Payday loan providers 'targeting young people'
Payday loan providers 'targeting young people'
Friday 23rd January 2009
Frances Walker, spokesperson for the Consumer Credit Counselling Service (CCCS), said that young people with low incomes often turn to payday loan providers when they run out of money, despite the extremely high interest rates.
She claimed that some of the companies offering these kinds of loans are now advertising on social networking websites in an attempt to entice younger borrowers.
"Payday lenders are a growing phenomenon in the context of the credit crunch because as people find it very hard to find credit they are turning to these other sources of credit," Ms Walker explained.
"They seem to have a forte of targeting young people because they have taken out quite a lot of advertising on things like Facebook," she added.
Ms Walker said that the "main concern" of the CCCS regarding payday loans was that borrowers often roll them over from month to month, meaning they find it increasingly difficult to pay off the debt.
Figures from Credit Action show that total UK personal debt stood at £1,456bn at the end of November.
News article brought to you by Debt1 – UK debt management specialists.
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