While You Can Borrow Up to 28 Days Later, We Don't Lend to Zombie Debtors, Says speedeloans
Claims that one in six payday loans users are only able to service the interest on their debts, leading to people "racking up" even more debt, have been challenged by industry expert and CEO of speedeloans.com, Gary Miller-Cheevers.

HERTFORDSHIRE, ENGLAND, December 08, 2011 /24-7PressRelease/ -- Claims that one in six payday loans users are only able to service the interest on their debts, leading to people "racking up" even more debt, have been challenged by industry expert and CEO of speedeloans.com, Gary Miller-Cheevers.

According to research* by the R3 insolvency group, millions of Britons will turn to a payday loan in the next six months in order to tide them over until their next payday, with just over 16.5% becoming "zombie debtors" - a phrase coined to describe people who can only pay the interest on their debt and not the debt itself.

Commenting on the R3 report, Mr. Miller-Cheevers says: "We understand that only 2000 people were surveyed. As only half of all adults ever use credit, the results are a little skewed. The figures do not agree with our data that shows that only 5% of our customers (one in 20) experience real debt problems.

"This substantiates our position of being a responsible lender. And for those 5% of customers who do get in to financial difficulties, we have arranged 'short term assistance' plans as well as working with reputable agencies such as the Consumer Credit Counselling Service".

Mr. Miller-Cheevers also highlights statistics from the Debt Support Trust** which say that the average payday loan borrower will have not one but four different payday loans on average, borrowing money from one payday loan company to pay back another payday loan company: "Sadly, there are some unscrupulous lenders who will saddle already debt-ridden individuals with more debt misery. Speedeloans, however, takes its responsibilities seriously. We have many internal measures to restrict lending to selected applicants and we further ensure that those who are we prepared to lend to, we only allow them to borrow a sensible amount in relation to their finances."

He adds that unlike some other payday lenders, they have recently strengthened their systems so that they can see if the applicant has multiple payday loans: "We vet our customers responsibly, rejecting 92% of applications. Our enhanced credit checking system is designed to weed out those people who already have multiple payday loans in place.

"Speedeloans is a responsible lender, offering an affordable cash advance until payday which is often cheaper than an unauthorised overdraft***. While there are some unprincipled lenders out there, consumers should be aware that we are not all the same and some, like ourselves, do provider a useful, affordable service for one-off cash needs."

RESOURCES:
*BBC online 07.12.11
**Debt Support Trust
*** Cost of an GBP150 unauthorised overdraft for 20 days*

Press Release Contact Information:

Gary Miller-Cheevers
SpeedeLoans Ltd
CEO and Founder
507 Centennial Park
Elstree, Herts
UK WD6 3FG
Voice: 0844 879 3199
Website: Visit Our Website