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Contradictory Comments for Payday Loans

Written By On 07/08/2013

With all the bad press that the payday loan industry has received recently, uSwitch have conducted their own survey to find out what the customers themselves really think about them. Some politicians have been gunning for the so called 'loan sharks'. They have said many derogatory remarks, but surprisingly the results were in contrast to what they might have expected.

The price comparison website reported that one in two have given positive comments in reference to their experiences. One in three taking part in the survey said they would not think twice in taking out another short term loan should they require one. One in five said that the loan got them through a very difficult time and helped them get on with their lives. A large percentage approved of the Office of Fair Trading watching the sector more closely, even though they may have had no particular issues themselves.

This is in contrast to all the bad publicity that has been bandied about. The consensus of opinion was that being able to get this type of loan helped them vastly in the short term. Many commented that their alternatives had been restrictive as they were not able to get any help from banks or other financial institutions.

At the other end of the spectrum however, more than one in four wish they had never even applied for this type of borrowing, while nearly one in five believed that it had made their financial problems deteriorate.

Uswitch also said that one in ten of those who have not had enough funds to stay afloat within the last year have chosen a payday loan as their option.

Michael Ossei from uSwitch said

Payday loans serve as a purpose in helping many families bridge the gap between bill payment day and payday, and the need for short term loans is escalating for those with poor credit ratings.