Will The Term Payday Loans Become A British Household Phrase?

Recently in the post-budget United Kingdom, financial experts have been predicting an increase in the number of payday loans being requested. Not only this but this speculation has been supported by one of the biggest unions, which ran a poll which showed that elements of the British Budget will tip families in financial difficulties into further debt.

It is no wonder that a percentage of British families are feeling unsure about what is on the horizon financially, and how this will affect the overall quality of their lives. The Institute of Fiscal Studies has confirmed that the budget will leave most household incomes reduced by two hundred pounds or even more

It is no wonder that a percentage of British families are feeling unsure about what is on the horizon financially, and how this will affect the overall quality of their lives. The Institute of Fiscal Studies has confirmed that the budget will leave most household incomes reduced by two hundred pounds or even more.

Predictably this will make life harsh for lower income family units, to the extent that some may have to go without items which are pretty basic. It will only be a matter of time before they will need to resort to payday loans or other ways to lay their hands on badly needed cash.

It could be said that the budget while appearing to give with one hand, was taking away with the other hand. The personal tax allowance was raised to nearly seven and a half thousand, but the higher rate threshold was reduced, which means that about three quarter of a million people will need to commence paying forty percent on their wages.

Child benefits have been frozen for 3 years which will have a significant effect on many families, not to mention the 1 per cent increase in NI contributions. This combined with another forty five or so tax increases leaves a fair amount of the population with challenges which will be hard to face.

Food and fuel costs are increasing, wages are being frozen and also in 2011 the VAT increased to 20%. Quite a few British families need to re-assess how they will reach the end of the month financially.

Let's face it, to some politicians the cuts may seem small and necessary, but when the cumulative effect hits certain households this is not the case at all.

This is not a pretty picture and will push some families to apply for payday loans; families who never needed to avail of this service before.

The picture becomes darker and drearier when we know about all of the many benefit cuts and tax increases. Services for payday loans will definitely increase in 2011, making it quite likely that as time goes on payday loans will become a regular British household phrase.

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