If payday loans are evil why can’t we come up with anything better?

There’s never been a better time to borrow money. Mortgages pegged at 1.29 per cent, 2.7 per cent personal loans, and 29-month interest free balance transfer cards are no longer the stuff of our credit-filled dreams. But the cost of short-term loans has remained stubbornly high.

We’re in the midst of a cheap credit bonanza, and yet the poorest and most marginalised continue to pay the most – a challenge that the industry seems unable to tackle.

Often dubbed alternative or fringe lending, in 21st century Britain the fringe has become really pretty big. A 2016 Money Advice Service study found that more than 16 million people had less than £100 in savings. In my region, the North East of England, 50.7 per cent of adults have less than £100 in savings. As austerity bites and real wages continue to decline, it’s not hard to see how quick access to relatively small amounts of credit is vital to many.