STUDENTS in the North-East are more reliant on payday loans than anywhere else in the country, a new survey has found.

A report compiled by accommodation provider Unite Students has revealed that almost 32,000 students nationally are using payday loans to make ends meet during their studies.

The research highlights that 3.6 per cent of North East students take out payday loans – more than double the national average.

This means that nearly 4,000 students in the region are using the quick-fix loans which can have APR rates of up to 1,500 per cent.

Jenny Shaw of Unite Students said: “It is hard to imagine how taking out a payday loan is the right choice for any student looking to get their finances back on track.

“If a student is struggling financially there are a wide range of options and support services available.

“Universities and some students’ unions have student finance advisors who offer an excellent service.

“It’s worrying to see a greater proportion of applicants believe payday lenders are the way forward. We can only hope that expectation doesn’t turn into a reality.”

Manon Goetschel, welfare officer at Teesside University Students’ Union, said there were many services available to help their students manage their money and welfare officers always made students aware of the potential risks of using services such as payday lenders.

She added: “However, students are of course adults and some will choose to go ahead and use them regardless of advice.

“We continue to offer support to them in dealing with their debts through our professional welfare advisers and can also link them up with external agencies who might also be able to help.

“We choose not to accept any kind of advertising or sponsorship from organisations offering these kinds of services and would always advise students against utilising them, especially if they’ve not had much previous experience of using credit and managing debt.”

Whilst the services provided by payday lenders can appear to offer a lifeline for people struggling to stay afloat, they have been heavily criticised for the amount of interest they charge, which can send people into a spiral of debt.

One of their fiercest critics is the former Bishop of Durham, now the Archbishop of Canterbury, Justin Welby who pledged to compete payday lenders out of business by using the Church to build up Britain’s network of credit unions.

Newcastle United also came under fire from MPs and fans alike when they agreed a £24m shirt sponsorship deal with payday lender Wonga in 2012.