More and more families are turning to cripplingly dear "payday loans" in a desperate bid to cope with the tide of rising prices.
Such loans, generally from small, local lenders, are usually for a few hundred pounds or less and have to be paid back at the end of the month when the borrower's salary comes in.
They normally have a maximum term of 30 days, but a typical interest rate of around 25 per cent a month. Borrow £500 and you'd have to pay back £625 a month later.
Household inflation is approaching a level unseen for decades, driven by rising food and fuel costs, according to the Office for National Statistics.
Research by price comparison site moneysupermarket.com shows the take-up of short-term loans has soared by over 55 per cent since September.
Tim Moss, head of loans at moneysupermarket, said: "The rise in payday loans symbolises just how difficult people are finding it to cope day to day.
"As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget."
"Payday loans can be a bit like taxis - convenient for short journeys, but if you're going a long way, there are much cheaper ways to travel.
"They should only be taken out when it's absolutely necessary and when you are sure you can pay it back quickly. Anyone looking for longerterm credit or unable to pay off the debt immediately should steer clear of them. It would be wiser to borrow the cash from family or friends or arrange an authorised overdraft."
"Of course, the best solution is to sit down and analyse everything you are spending your money on - are there any potential savings you can make and is all of your spending essential?
"Then get in the habit of making regular contributions to a high-interest current account, so there is always money available should you need it."
Source google.co.uk
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