Research by savings platform Raisin UK reveals the demand for “payday loans in London” has surged by a massive 320% over the past 12 months, as the nation faces a huge crisis in the cost of living and families struggle to make ends meet.

It is no surprise people are looking towards emergency solutions like this. Uncertainty is a massive worry for everyone at the moment. Families are facing huge increases in the price of energy bills, and petrol hit a UK record high at 163.5p per litre. Whilst official figures show the price of staple groceries have rocketed by as much as 45% in the past year.

Kevin Mountford, Co-founder of savings platform Raisin UK, explains why Brits should avoid turning towards payday loans, and shares tips on what they should do instead:

“Many households across the UK are witnessing a significant increase in their household outgoings. However, payday loans can be a dangerous road to turn down, despite the short term relief they may provide.

It is easy to fall into a cycle of debt with these schemes if you continually require them to cover shortfalls. With rising interest rates, payday loans will most likely leave you struggling financially, even more as you will owe these companies a continually growing amount of money.

Even in the face of higher bills for working families, I would really discourage people from turning to payday loans as a solution. They offer a temporary solution and are in no way advisable to fix long term problems.”

Alternatively, Kevin offers these tips to help Brits cut back on their outgoings and protect their wallets from the high cost of living:

Do you need a payment plan? Contact your energy supplier, as firms must agree to a payment plan that you can afford, and will not cut off your supply if you work with them to see how much you can pay. Ask whether you can be added to its Priority Services Register, to access free help and support if you are vulnerable.
Save on your food shop. Can you make sensible swaps in your food shop, to reduce your weekly outgoings? Shopping at budget supermarkets like Lidl and Aldi can significantly reduce this expenditure. You can also make your money go further by looking for multi-buy deals on items that will last for longer, or when using vouchers and coupons.
Cancel unnecessary subscriptions. Do you have any direct debits that you are paying without realising? Can you share a streaming service account with a friend, or cancel a premium account that you don’t make the most of?
Cut the cost of the commute. Using services like split my fare can cut your monthly travel budget significantly if you travel to work by train. If you drive, look at whether public transport offers a cheaper alternative, or if you can lift-share with a colleague.
Sign up for discount schemes. Petrol station chains and supermarkets all offer loyalty schemes that can help you cut your costs significantly. A Tesco Clubcard gives you access to exclusive deals and helps you collect points when buying Petrol.