The face of consumer credit is changing in the UK
The consumer credit market in the United Kingdom is one of the largest credit markets in Europe.
One important aspect of the consumer credit industry is payday lending, or the payday loan market, which has grown rapidly in the UK in recent years. The Office of Fair Trading estimates that the payday loan market was worth £2.0 to £2.2 billion in 2011/12, and this corresponds to between 7.4 and 8.2 million new loans; this is up from an estimated £900 million in 2008/09.
Despite this recent growth, payday lending is still only a very small proportion of the total unsecured lending market.
These pie charts give an indication of how small the payday loans market actually is in comparison to the overall credit market. Payday loans are also known as emergency loans or short term loans.Online payday lending is the most popular way for people to obtain loans because the process is generally convenient.
The Payday Loans industry is a small part of overall debt in the UK