The Consumer Credit Counselling Service has warned borrowers against taking out payday loans.

The short term lending products can be particularly attractive to consumers with bad credit histories, as they provide funding quickly to aid cashflow problems.

Since the credit crunch, the CCCS says payday loan demand has increased, but can be one of the most expensive ways to borrow money.

Price comparison website uSwitch.com last month released research on payday loans demonstrating how a payday loan of 750 GBP can end up costing a borrower 1,687.50 GBP if they do not start making payments for five months.

This entry was posted on Monday, February 2nd, 2009 at 11:05 am and is filed under Bad Credit Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.