UK money savers are being offered the ability to possibly earn more money on their savings funds than keeping them stored in a bank by making some of that money available to companies to lend it to people borrow as payday loans.
Peer to peer lending companies are becoming quite popular as demand for same day loans continues to grow at an alarming rate as more traditional high street lenders remain unwilling to lend people money. These peer to peer lending companies offer people the chance to earn up to 12% on their money by letting websites that offer payday loans use their cash to lend to people.
To be a part of these lending schemes people will have to decide for their selves whether they are comfortable in being technically payday lenders, this decision is a little more difficult for some as payday lending has received quite a lot of bad press. Many people are however quite happy with the arrangement and believe that blame is not always on the lenders although there have been some lenders featuring in the news recently for underhand tactics. While there should there be a high degree of responsible lending it should also be matched by responsible borrowing.
In an article on www.thisismoney.co.uk Justin Modray who is a founder of the financial advice website “Candid Money” is reported to have said: ‘These types of organisations are by no means an alternative to ordinary savings accounts. “With this, you are essentially becoming a payday lender — and some people may feel uncomfortable with that.”