There is a whole generation of people in the UK that have been scared off by the payday loan industry due to underhand dealings, incredibly high interest rates, and poor customer service standards. All of these things have changed in recent years, with a greater level of transparency from responsible and reputable lenders that want to ensure every customer is treated fairly and as a unique case. This change in approach from the industry, as well as the way in which the younger generations feel cut off and financially left behind by those who have come before them, has made for an interesting trend where young people are now more likely to use a payday loan service.
This is all down to the burden of debt that many people of a younger generation feel when compared with their parents and grandparents generations. There could be any number of reasons why a younger person might require the assistance of a payday loan company to help with a short-term financial predicament. This could be that they are looking to set up a new business and require a small loan to start things properly with the purchasing of equipment and the like, or it could be that they wish to secure a new car, or to pay emergency bills for any number of reasons such as a broken down vehicle, or an emergency tax bill or medication. As a young adult you might not have had the time to build up enough savings to help pay for things like this in an emergency, and if you do not have access to other people’s money, such as from your parents, or a close friend, where else can you turn?
Historically of course people would just have gone to their local bank, arranged a meeting with the bank manager (who they would know by name), and ask to extend an overdraft or to borrow some money. In this day and age everything is automated at the banks, and you probably don’t know the name of your bank manager, if you can get a meeting with him or her at all anyway. There is no longer the personalised approach, and since the economy took a turn for the worse a decade ago it has been harder to secure credit through traditional lending streams.
This is why young people are happy to go for a payday loan, especially since the transparency levels have increased over the past few years. Now, you can apply for a loan on your phone, through a payday company website, in just a few minutes. Your application is processed quickly, with the funds sent to your bank account within hours if successful, and best of all, you know exactly how much you will have to pay back including the interest fee attached to the initial lump sum. A payday loan isn’t frightening to a young person, because they know the score from day one, and they can borrow money without even moving from the sofa if needs be.