xx xx took out a payday loan in March 2011 and cleared her debts only at the beginning of this year.

She first borrowed about £170 but after paying it back took out another, bigger loan, and then eventually borrowed more than three times the original sum. xx , 26, from Dartford, Kent, feels that young people need to be alerted to the dangers of payday loans. ‘My outgoings matched my incomings but there was little room for an emergency,’ she says. ‘When I repaid the first loan I no longer had enough money to get through the month, so I took out another loan and so the cycle went on.’ xx, who works as an activities co-ordinator at a residential care home, borrowed from payday giant Wonga, which operates a ‘trust rating’.

This means that borrowers who repay on time are often rewarded with the chance to borrow more next time. Steve says she was eventually offered a loan higher than her monthly salary, which she did not accept. ‘It was only bloody-minded determination that got me out of this spiral of debt,’ she says. ‘I always felt shy about admitting to anyone that I was having problems because I was worried that people would judge me. It’s not just the staying up at night wondering how to pay it back – you also feel alone. I don’t want other people to feel that way.’...Read more here