Pay day loans are becoming an increasingly common phenomenon in the United Kingdom, with pay-day loans a now £2 billion a year industry. These loans are often extremely high interest over a short period of time, often reaching or exceeding 4000% APR. Due to these high interest rates, missing payments can lead to a debt spiralling effect, in which debtors are trapped under an ever increasing mountain of debt, often using new loans to pay off existing loans, worsening the problem. However for many people that are able to pay back the loan quickly and without incident, pay day loans may be seen as a more convenient alternative to credit cards and bank overdrafts.