Petition Minimum term for personal loans

What is the point of a payday loan? The theory is that you take the loan out and then when you get paid, you make full repayment.

In reality this is not happening. Many people who take payday loans out, end up having to roll them over into a following month or take out another payday loan to try and cover the first. The charges then start adding up.

If you could have a minimum term for personal loans, perhaps twelve months, then people could take a realistic view of whether it was affordable over this period. The term payday loan wouldn’t exist any more and the lenders would have to take a greater consideration of whom they lend money to.

Lending money will always exist, but the way the Payday loan market ruins many people’s lives in such a short space of time is extraordinary. One way to tackle this would be to have a minimum term for personal loans.

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