More people in South Cheshire are saddling themselves with payday loan debts, warned Cheshire East Citizens Advice Bureau.
Bosses at CECAB say they are seeing a worrying rise in clients struggling to repay not just one but several payday loans.
The number of local payday loan providers is on the increase, and CECAB say such loans are particularly common among younger clients and those who access goods and services online.
The warning comes as the new payday lending customer charter is launched.
More clients are signing up to pay with their debit card, but when the whole loan amount plus interest is taken from their bank account they are tipped into overdrafts with charges, say CAB.
Liz Shaw, CAB chief officer, said: “We’ve seen problems relating to payday loans rise significantly over the last four years and we’re worried that this will only increase as more people feel the squeeze.
“Christmas can be a particularly expensive time, but January always comes and we urge people not to get stuck with a Christmas debt hangover and seek budgeting advice from Cheshire East Citizens Advice Bureau now.”
People who have taken out payday loans are urged to take part in a national survey to monitor whether lenders are sticking to their self-regulating charter.
“We want our clients to help us hold payday lenders to account,” added Liz.
“For too many people payday loans are a fast but dangerous way to borrow money. Quick cash payouts can have damaging long-term consequences.”
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