22 November, 2008

It has been revealed that an increase in the number of payday loans no credit check being seek out by households in the UK is proof of the troubles caused by the credit crisis and highlight "unsustainable" levels of personal debt in the UK.

According to research by the Moneysupermarket, commissioned by the Times, the number of payday loans no credit check taken out has increased by 130 per cent since last August.

According to Liberal Democrat MP Vince Cable, the trend is proof of the monetary difficulties many people currently find themselves under pressure in as a result of the credit crisis and "the unsustainable levels of personal debt in the UK" as reported by the newspaper.

Chris Tapp, from debt charity Credit Action, echoed Mr Cable's view, stated that numerous people with monetary difficulties are planning to apply for loans, which can charge interest rates of up to 1,335 per cent.

"The growth of people who have troubles who have such a loan has been notable in the last six months," he added.

According to Tim Moss from moneysupermarket, these loans are inappropriate for those looking to wipe up their debt troubles, which are continuously putting them under strain.