1 million British households take out payday loans each month

One million British households take out payday loans each month, a poll shows.

The poll for consumer group Which? found that 4 percent of Britons, equivalent to one million households in the country, had taken out a payday loan last month with 38 percent of them using the high-cost loan to pay for essentials like food and fuel.

Half of those who took out payday loans also said they can’t cover the increasing repayment charges, while 28 percent said they think of it as a necessary part of their lives although they don’t like being in debt.

“Credit should never be used to pay for essential living costs, and the fact that so many are using it this way points to a wider problem in the economy,” said debt charity StepChange’s spokesperson.

The figures come ahead of a summit on the multi-billion pound industry tomorrow between lenders, ministers, and consumer organizations.

Critics believe turning to money lenders is the last resort for people at a time when the British government is imposing indiscriminate spending cuts regardless of their impacts on the poor.