Debt increases due to the granting of payday loans.

People take a loan to finance their needs.

People take a loan to finance their needs.

More and more people are turning to loans to be able to finance their monthly expenses. For this reason it is not surprising that there has been an increase in indebtedness in Spanish households due to the granting of payday loans.

For some time now, Spanish households have become accustomed to resorting to contracting instant financing products in order to face certain types of expenses. For example unforeseen events, the need to change household appliances or even the option of living a family vacation. And it is not surprising that there has been a boom in this type of financing. It should not be forgotten that the requirements to offer this type of instant loan are practically non-existent in most cases.

The volume of this type of operation does not stop growing from one year to the next. During 2016, 27,355 million new operations were registered. In total we speak of a volume of 31,154 million. That is to say, 14 percent more than those registered in 2015.

A year, where, in addition, the volume of payday loans increased by 13 percent compared to the results of 2014. 2016 has now become, since the beginning of the recession, in the year in which the largest number of credit investments were registered. In 2009 alone, it is assumed that as a result of the latest shocks to the economic boom, banks managed to register a total of 31.5 billion personal credit operations.

Spanish get into debt by every month

Spanish get into debt by every month

The Spanish have started to get into debt month by month at an accelerated rate, especially through the contracting of the following fast-financing products.

  • Express personal credits. There are many options on the market to obtain amounts of up to $ 15,000 in less than 48 hours.
  • Revolving credit cards, that is, those where the counter is reset to zero when a new month begins.

This was stated on March 22 by Fernando Casero, president of the National Association of Credit Financial Establishments.

Payday loan can buy all your needs.

Personal loan can buy all your needs.

It is increasingly common to go to payday loans to buy all kinds of products. In fact, 62.7 percent of the financial operations that were accounted for during 2016 correspond to this type of product. The biggest rebound, however, is associated with loans requested to buy vehicles. This sector is the one that has experienced the biggest rebound whose lines of credit obtained a volume of operations 21 percent higher than in 2015. In figures we are talking about 10,193 million new operations.

In general, the increase in this type of loan is associated with a slight economic recovery that the country is experiencing. This less turbulent panorama leads Spaniards to have more confidence and to increase financing for day-to-day expenses. However, other media are of the opinion that increasingly lower wages and increasingly unstable workforces Spaniards to resort to the granting of payday loans in order to make ends meet.

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