Borrowers shun pay day loans

Portsmouth & Southsea railway station by Andy Cooper

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ADULTS in Portsmouth are turning their backs on controversial ‘pay-day’ loans, research by the R3 insolvency trade body has shown.

A huge 95 per cent say they are unlikely to take a payday loan in the next six months.

Julie Palmer, R3 member of R3 and from Begbies Traynor in Portsmouth, says it is promising that, despite financial challenges, those in the south east are not counting on payday loans to fund their spending in 2014.

She adds: ‘With the January sales in full swing and glamorous TV advertisements urging people to book their 2014 holidays dominating our screens, payday loans can seem alluring. However, it appears those in the south east are not convinced of their merits.

‘While short-term, high cost credit does have its uses, there is a danger that financially vulnerable people can get caught in a debt trap thanks to penalty charges or loan rollovers.’