In the United States, consumer debt is spiraling out of control…with over 6,000,000 people drowning in debt each year–and climbing. In the United Kingdom, many more unfortunate families will continue to fall deeper in debt–especially without regulation in place to safeguard consumers. In the United States, the average fee on a payday loan is $20 per $100 borrowed. For many people, payday loans are a way of life–and without them they would have no other options. Therefore, deferred payment loans are positive in a way–provided that consumers pay the loan off in a timely manner and wisely budget their money. Unfortunately, this usually is not the case. And in the UK, payday lenders are NOT providing a needed service–they are, in fact, taking advantage of desperate people in financial need.
The following table list the payday loan fees and structures for 38 states that allow payday lending. Interested in UK payday loan statistics? [future link]