Four times more people are being hooked by crushingly expensive “payday loans” than in 2006, a report has revealed.
More than a million people have borrowed £1.2 billion through lenders who charge interest rates that work out higher than 2,000 percent annually.
The average payday loan is £294. Many people on very low incomes take out multiple loans a year, relying on them to pay bills month-to-month.
Borrowing £294 for a year can end up costing £5,880 to pay back at payday loan rates.