UK Payday Loans Online Are Useful And Safe And It Helps Many Individuals Get Money Owed Paid Along With Other Private Finances

(EMAILWIRE.COM, March 03, 2011 ) London, UK - The number of people using payday loans in the UK has increased by over 4 times during the last four years, from 1.2 million in 2006 to 4.1 million in 2010. U.K. borrowers take out an average of 3.5 loans per year and the average size of a loan is an estimated Â£294.

The question is what is behind this increase in popularity of cash advance loans in the UK? There are several reasons behind the growing popularity of these short-term loans.

1. Bank Fees and Other Late Fees. Just like in the United States, high late fees charged by banks, cable companies, companies, phone companies and utility providers make payday loans a rational choice for many U.K. consumers. Compared to a $30 or $40 late fee on a small amount owed, taking a payday loan for Â£500 payday loan for a Â£100 fee makes sense.

2. Economic Downturn.The economic downturn has hit the UK very hard and the impact has been less available credit for consumers. Therefore, many consumers are turning to payday loans as their only source of credit in these tough times.

3. US Companies Entering United Kingdom. Another driving factor behind the growth of the U.K. industry is the entrance of American companies. Companies like Quick Quid are units of large internet lenders in the US. These companies see the UK as a relatively large market with a more stable regulatory environment than many states in the U.S. The U.S. market is driven by state laws and the U.K. industry is estimated to be as big as the 3rd or 4th largest state in the U.S. So, American companies are driving innovation and demand in the U.K.

4. Convenience of Online Lending. Getting a loan from a local store can be difficult and time consuming process. In the U.S., online companies cannot deliver fund to the consumer until the next day, so many consumers prefer to get their cash immediately at a storefront location. However, in the UK, consumers can usually get their funds in a matter of hours, making online cash advances an easier, more convenient option for them.

5. Real Estate Costs. The final reason online payday loans in the UK are so popular is due to the higher relative real estate costs in Great Britain. In the U.S., real estate is typically much cheaper and more readily available. Higher costs in the UK drive up the costs of stores and therefore drive many more payday lenders to the internet in the U.K.

6. The payday loan industry in the UK is growing by leaps and bounds. There are many reasons for this growth, but the aforementioned five reasons are the major driving force behind this expansion.

Charlie L. Logan is an expert on payday loans, credit cards, title loans and other sub-prime lending in the U.S., Canada, United Kingdom and Australia. He currently advises http://bit.ly/LoansTillPayDay on their U.S. and UK Payday Loans initiatives.

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Charlie L. Logan
213-639-9475
CharlieLLogan@yahoo.com