Payday Loans And The Uk

1024 Words Sep 17th, 2016 5 Pages
Payday loans have always been present in the history for a long time. People employ them for their immediate needs. They are quickly becoming relevant especially after the credit crisis that appeared in 2008. There are various important values that define these loans. They can be used to learn more about the payday loans. Here, we start with describing some important aspects of payday loans and then end with shedding light on the uses of these particular loan aspects.
History of Payday Loans
Payday loans started in the modern financial market when a need was recognised in order to serve a product for lower level communities. There was a need to save people from the traditional pawn shops by serving them better products that are governed through laws and regulations. These modern payday loans first appeared in the United States but quickly found their niche in the other countries such as the UK.
Payday Loans in the UK
Payday loans have quickly gained financial prominence in the last few years. The number of people that are using these loans is increasing all the time. These loans are essentially taken by people that have low annual income which is mostly below 25,000 Pounds a year. This means that it is especially a product designed to attract people that belong to the lower segment of the community. The total business has already entered a value in billions of Pounds.
Payday lenders are not bound here to have a specific interest rate and this allows them to charge hefty…

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