Payday loan is good short term option amid savings deficit
(21 November 2005)

One in five Brits never saves their money and prefers to spend instantly, according to new figures – but if you're looking to change your spots after the rush of Christmas spending, a one-off payday loan would be a better option for the festive period than a credit deal that leaves you committed for months afterwards.

Bradford and Bingley, in its first annual Savings Report, shows that only 36 per cent of people save regularly, while 20 per cent never save and 11 per cent would rather splash out immediately on holidays, clothes and gadgets than stash their cash.

Correspondingly, 27 per cent of those surveyed said that lack of cash is their reason for not saving – but this seems to further accentuate the view that this dearth of ready money is due to people spending far more than they can afford.

Steve Potter, head of savings at Bradford and Bingley, said: "The spending culture has certainly replaced the savings culture in the nation's consciousness.

"With so many attractive interest-free deals many people are being tempted to buy now and pay later. Just how much they will later pay, however, remains to be seen."

If you do need a cash fix to help you finish buying presents this Christmas, a short term loan could make more sense than a flashy deal which might lure you into spending more than you can afford and making expensive repayments over a long period of time.


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