How to keep out of the clutches of rip-off payday loans

Michelle McGagh
Hard-up nurses using payday loans
Hard-up nurses using payday loans

A payday loan charging just 2% a month may seem like a dream but that is exactly what one credit union is doing as it tries to save Londoners from the clutches of rip-off lenders.

The payday loan market is worth over £2 billion but has been criticised for its high rates – with a typical lender charging 5600% – and irresponsible lending to those who cannot afford it which kickstarts a spiral of indebtedness.