In the last few years it would be hard to ignore the fact that payday loans and buying gold companies have increased considerably. This increase can be seen across a plateau of media outlets; including daytime TV, throughout the Internet and even making an appearance during Prime Minister’s Question Time.
The level to which the UK’s population is now demanding these services is so much so that large US companies are now buying those in the UK marketplace; to shore up what they feel will be a lucrative market in several years to come. Let’s remember that these services originated in the good old’ US of A and they now see the UK as a fertile stomping ground for their quick cash products.
Of course the inescapable truth of the matter is that the rise in this type of credit has coincided with the advent of what we now know as the credit crunch. As the larger financial institutions such as banks and credit card companies have restricted their lending patterns/habits, it has left a large gap that has been seamlessly filled by these bad credit marketers.
For the simple fact that most people cannot obtain easy credit in the same way that they have become accustomed to over the last few years seems to be the reason why services such as buy gold have now become popular. As the Labour government unveiled the title of what was to become their last budget, the austerity prefix seems to have become the norm and the UK population have eventually accepted it as such.
As the UK trudges on in what would appear to be a time of belt tightening and penny watching, it seems that some of the population just won’t accept the fact that fast loans and no questions asked credit is no longer available.
The high street chain The Money Shop which offers both services of buying gold and payday loans UK has been, depending on how you view the subject, a victim of that success – as it has now been brought by large US financial company Dollar Financial. This move that will take The Money Shop into the world of the internet (with bells on) was followed up by the purchase of the payday loan company payday UK.
The company, which plans a rapid expansion of its high-street stores to over four times the number they are currently at sees no slowing in the U.K.’s appetite for buying gold products or payday loans. This has worried many of those currently in Parliament, including Labour MP Glenda Jackson. She is to raise the question in the coming months of whether there should be a cap on the interest this type of payday lending incurs and whether the accessibility of these products should be limited.
It would appear that where there is a demand there will always be a supply and this certainly rings true for the buying gold and payday loan industries. What the future holds for both is up for some debate, although if the larger companies have their way there will be buying gold and payday loan stores in every town across the UK.
Niall Rice manages a payday loans UK website and has been following consumer trends after the financial bail-out of banks by the previous UK Government.