Payday loans 'becoming more popular than traditional credit'

A growing number of people are taking out payday loans, it has been said.

Many consumers in the UK are deciding to opt for payday loans as a way of making ends meet instead of traditional lending methods such as credit cards.

That is according to Ed Bowsher, head of consumer finance at Love Money, who has said that these short-term personal loans are proving popular with people unsure whether they will be able to obtain credit from a bank or building society.

Mr Bowsher explained that this industry "seems to be growing fast" in the aftermath of the global economic downturn and indicated that normal high street financiers' reluctance to lend freely following the recession may be dictating this trend.

"No doubt some people take out payday loans because their bank won't lend to them, but others may just like the speed," he noted.

Research published last week (June 8th) by R3 found that six million people across Britain are currently behind in bill payments.

By Joe Letts