Can online payday loans be trusted?
Most payday loans lenders are authorised and regulated by the Financial Conduct Authority (FCA), but you should always
check their details on the
FCA register and make sure that the website listed there matches the website you are applying on.
Keep in mind as well that broker websites are less safe as brokers tend to sell your information rather than provide
the loan themselves.
Payday loans during the cost of living crisis
In September 2022, Channel 4 released a documentary called
“Broke: Britain’s Debt Emergency”. The documentary uncovered some alarming statistics about the current cost of
In the last 6 months, 1 in 4 people borrowed to pay for food and energy bills
It is predicted that 1 in 5 people will be in poverty by next year
- Prices are rising faster than any time in the last 40 years
- 1 million people are borrowing from illegal loan sharks, that’s a 233% increase from previous estimates.
- 45% borrow from a loan shark to cover everyday living costs.
With the cost of living continuing to rise in the UK, more people and being pushed into debt – many for the first time
in their life! The documentary claims that UK households are faving the
largest collapse in living standards since records began. For the average consumer, this means less monthly
disposable income. For example, according to Citizens Advice data, last year a Citizens Advice assessment client on
UC had £15 a month at the end of each month, but this year they have -72p.
Should I apply for a loan if I am struggling with the cost of living?
No. The worst thing to do when you are struggling to cover everyday costs is to borrow high-interest loans. Instead,
you should reach out to Citizens Advice or Stepchange to get free and impartial fianncial advice.