Another month is ending, the recession is biting and thousands of people are flocking to their local loan house or internet vendor for an average of about £230 to tide them over till payday.

Online lenders charge as much as about £25 for a £100 cash advance, payable by direct debit from the borrower’s bank account 30 days later or on the day their salary hits. That adds up to a hefty annual percentage rate of 1,730 per cent. High street lenders that vet customers in person charge about half that.