Numerous customers over the EU resort to pay day loans when they’re already greatly overindebted and whenever the best way to getting away from their monetary trap would be to offer a number of their assets (such as for instance a car or truck) or come into an official financial obligation decrease procedure (such as for instance bankruptcy) (European Parliament 2014, p. 60). This type of product was often used by consumers to cover the fees and charges incurred from prior loan default, with a spiral of increased overindebtedness as a result (Reifner et al. 2010, p. 124) in the Czech Republic, Slovakia, Slovenia, Ireland, Romania, and Poland. Pay day loans can therefore be particularly harmful to customers whom have severe debt dilemmas. In specific, this particular credit product gifts problems that are major it’s supplied to low-income groups and teenagers (European Parliament 2014, p. 59).