The number of people getting into financial trouble by taking out multiple payday loans has soared.
Since 2009 there are four times as many people who turn to a debt charity for help because they have 10 or more payday loans.
Meanwhile the Consumer Credit Counselling Service says it’s experienced a three-fold increase in distraught debtors with five or more payday loans.
More people than ever are getting into trouble after taking out high-cost credit – which costs up to 4,000 per cent APR – from payday lenders.
And the average amount they owe is also climbing up from £1,187 in 2009 to £1,458 this year.
The charity said the number of people seeking help with payday loans, soared from 6,491 in 2009 to 17,414 in 2011.
With almost three months to go in 2012, 16,467 desperate debtors have this year sought help.
Delroy Corinaldi, CCCS external affairs director said: “Multiple payday loans can very quickly become unmanageable. Measures must urgently be put in place to ensure that more people don’t find themselves in this situation.”Reuse content