Families find the holiday period a expensive time, as they struggle to manage Christmas expenses, gifts, food – as well as providing a holiday experience for children.

Desperate families are taking out loans to cover power, gas, water and food bills.

“Payday” or short term lenders are slugging customers with repayment charges equivalent of up to 900 per cent for small loans.

An estimated 380,000 Australians can use short term loans to cover expenses. A major report warns the industry has grown tenfold in the past decade.

It is estimated that more than $200 million a year is borrowed through short term, high cost deals.

Payday loans are typically for small sums, form $200 to $500, designed to be paid back in 2 – 4 weeks.

When interest and fees are converted to an annual percentage, charges are up to 900 per cent.

Pensioner “Graham” knows the perils of payday loans all too well.

He has taken out 50 small loans ranging from $50 to $200 over the past 6 years, to help cover household expenses.

He has borrowed a total of $6500, but has been charged $2500 in fees --- and has resorted to asking organisations such as DVCAB for assistance with food parcels.

Holidays are great ---- we hope!