THE collapse last month of Wonga, a payday lender, was cheered by many Britons. The company, which was the best-known lender in the so-called short-term, high-cost credit market, lent money to people who needed something to tide them over until their next paycheque. It was a notorious firm. A coroners report in 2014 noted that on the day Kane Sparham-Price, an 18-year-old, hanged himself, Wonga had taken from him part-payment for a debt, emptying his bank account and leaving him in absolute destitution. The demise of Wonga may stop some Britons finding themselves in such desperate financial situations. Yet the underlying causes of Britains debt troubles are worsening.
In the past two years Britons have been squeezed by both the labour mar…
Read the full article at: https://www.economist.com/the-economist-explains/2018/09/13/why-britons-are-worried-about-debt
