The clue is in the name, payday loans are not for people out of work.
Recent surveys have shown that 35% of people who are taking out these loans are under thirty five, 30% own their own homes and three quarters are in full time employment.
It is working Scotland that is being squeezed with pay freezes, cuts in hours, increased travel costs and hikes in energy prices.
It’s in this environment that payday loan companies have spread like a virus across Scotland, taking advantage of hard pressed families, prepared to run the risk of incurring annual interest rates in excess of 4,000%.
The successful campaign to end legal loan sharking which included churches, advice groups and politicians has forced the government to act by increasing regulation and capping interest rates.
While these curbs on legal loan sharks are welcome, it doesn’t solve the financial problem that working people in Inverclyde are facing, and with the obvious pressure of Christmas coming up it will be easy for people to slip further into debt.
That’s why it’s vitally important that there is public support to ensure that people have the widest range of options available. Thankfully in Inverclyde there are work and community based Credit Unions that can help you manage your finances with low interest rates that are more favourable than the banks, and when things get really difficult it also important to note that you can access free, independent and confidential advice at MONEY MATTERS on 715 965.