Chaun Wilson raised some valid points regarding payday loan companies in the Thursday Soapbox (The Argus, April 10).

It is ironic that loan shark lending is illegal yet payday loan firms can charge massive interest rates. Surely the same law should apply to both lenders?

One possibility is for interest rates to be set by the Government. Society generally needs to identify the root cause of why such business flourishes. People who use these lenders fall into several groups.

There have always been people who simply have no idea how to handle money. These people simply spend cash as soon as it reaches them. Such individuals squander vital cash on Bingo, betting etc.

Another group seems to have emerged since the 1980s. I started work in 1970. In those days most workers were paid weekly. I can remember in the 1970s on the day prior to payday people trying to borrow cash from other employees to tide them over until they were paid. Local shops often gave credit. In fairness, most people could usually survive 24 hours before they received their wages. Many a publican or bookmaker would point out that Wednesday was the quietest day of the week.

Nowadays more people are paid monthly. I can understand the benefits monthly pay brings employers – wages staff and admin costs are reduced.

However, whereas a weekly-paid person would experience difficulty for one day, someone on monthly pay will probably have shortfalls lasting a week or more at the end of the month. This means they have to obtain cash from somewhere simply to live – hence loan sharks and payday lenders.

Some people just need to be educated in cash management. This process could start at school and employers should be encouraged to continue this process at work. If we are to defeat the scourge of high-interest, short-term lending we must offer alternatives. Credit unions already exist which offer short-term affordable loans. The Citizens Advice Bureau will offer free advice. Organisations such as churches, various community and residents’ associations could be used as a medium to arrange financial advice and support to local people.

But the final message is to the borrower – “What you borrow today you must pay back tomorrow!” It may be better to go without now than put your neck into a financial millstone. Everyone must take responsibility.

Richard J Szypulski, Lavender Street, Brighton