Numerous customers over the EU resort to pay day loans when they’re already greatly overindebted and whenever the best way to getting away from their monetary trap would be to offer a number of their assets (such as for instance a car or truck) or come into an official financial obligation decrease procedure (such as for instance bankruptcy) (European Parliament 2014, p. 60). This type of product was often used by consumers to cover the fees and charges incurred from prior loan default, with a spiral of increased overindebtedness as a result (Reifner et al. 2010, p. 124) in the Czech Republic, Slovakia, Slovenia, Ireland, Romania, and Poland. Read more
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