Pay Day Loans - a last resort
The TV adverts show a Pay Day loan as an easy way of borrowing a few hundred pounds to see you through the money gap. There's usually no credit check, they can be applied for online, and approval is almost certain provided you have a regular income and a bank account with a suitable debit card.
There's no doubt that these payday advances can be a lifesaver, but there are two very significant problems: extremely high cost, and getting trapped in a payday loan debt cycle.
The Pay Day loan Trap
The problem is the ease of 'renewal' of these loans. Simply by paying another charge, you can defer repayment of your debt for another month. It's easy to see how this can become a real problem, with the borrower becoming dependent on taking out a new loan each month because they can't afford to repay the original one, and being charged sky-high fees each month to do so.
What to do if you are in the Pay Day loan trap
It's when they become a permanent feature in your monthly finances that the warning bells should be ringing loudly.
If you find yourself in theis position, it's not your fault, as some would argue this product has been designed to suck people into the trap of constant borrowing at high cost.
Don't worry there is a way of beating the Pay Day loan trap.
Take the "get out of debt" test now, and see if you can beat the Pay Day loan trap, pay back what you can afford, and freeze interest and charges.
Need help with pay day loans?
Our specialists can quickly advise you on what to do if you've got pay day loan debts.
Simply call the team on 0800 36 88 133, or take the get out of debt test and discover your best solution.