If anybody looks closely to the statistic of the people who are enjoying the payday loans UK, the incensement in number will certainly surprise him. According to the statistics, there were 1.2 million of people using payday loans UK in 2006. But now the number is increased to 4.1 million in 2010, i.e. 400 hikes in just 4 years. The borrowers of UK are taking out average 3.5 loans per year and the average estimation of a loan is £294.
Now the question which strikes us is what is the reason behind this surprising hike in the field of cash advance loans? There are a handful of reasons behind the soaring popularity of payday loans UK.
Bank fees as well as other late fees: In UK not only the banks but also the phone companies, cable companies and other utility providers charge very high late fees. As a result of that, these short—termed loans have become immensely popular among the consumers.
Economic downturn: With the rest of the world, the economic downturn has hit UK too. As a result of that credits from banks have become less available. Therefore, the consumers are left with no choice but to go for payday loans UK, just because those are the lone sources of credit.
The US companies are now entering in UK: The US companies have made the necessary opening in UK--market. These companies are taking UK as a large market having a better future and which has steadier regulatory situation than that of many states of the United States.
Convenience of online lending: In the United States getting a loan from a store, even if it is a local one, can be enough time—consuming. It usually takes a day. But in the UK it is a matter of hours.
Now the question which strikes us is what is the reason behind this surprising hike in the field of cash advance loans? There are a handful of reasons behind the soaring popularity of payday loans UK.
Bank fees as well as other late fees: In UK not only the banks but also the phone companies, cable companies and other utility providers charge very high late fees. As a result of that, these short—termed loans have become immensely popular among the consumers.
Economic downturn: With the rest of the world, the economic downturn has hit UK too. As a result of that credits from banks have become less available. Therefore, the consumers are left with no choice but to go for payday loans UK, just because those are the lone sources of credit.
The US companies are now entering in UK: The US companies have made the necessary opening in UK--market. These companies are taking UK as a large market having a better future and which has steadier regulatory situation than that of many states of the United States.
Convenience of online lending: In the United States getting a loan from a store, even if it is a local one, can be enough time—consuming. It usually takes a day. But in the UK it is a matter of hours.
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