Payday loans. Don’t use them to deal with debt.
If you’re struggling with debt problems, payday loans aren’t the answer. They’re a short term type of loan and will usually have a significant amount of interest.
It’s important to know that payday loans are not a debt solution and can make your financial situation worse. Our free guide to payday loans will take you through all the ins and outs you need to consider with a payday loan. You can also watch our video to find out more on what questions to ask yourself before taking out one of these high-interest loans.
Guide to payday loans [links to StepChange]
Is a payday loan right for me?
It depends on your situation, but there’s a likelihood that a payday loan isn’t a good idea. It’s important to make sure you think things through before taking one out. You should consider:
- Why do I need a payday loan?
- Are there other sources of finance available with lower interest rates?
- Can I afford to repay the debt on time?
Alternatives to payday loans
There are several alternatives to consider before taking out a payday loan…
- Your local credit union: they provide straightforward and affordable financial products. Credit unions are likely to be far cheaper than payday loans.
- Sell your unwanted items: have a clear out and turn these into cash
- Cut back: reducing your spending might be enough to avoid the payday loan trap
- Ask friends and family for help: it might mean swallowing your pride but could save a lot of worry in trying to repay a payday loan
- Get debt advice: if you’re considering a payday loan to deal with an existing problem then you’d be much better getting some free and impartial debt advice from us.
Have you got any payday loan stories?
If you’ve taken out payday loans in the past what attracted you to them? Why did you take one out, and did you find all of the loan’s details on the lender’s website sufficient to make a considered opinion?
Or, have you receive cold calls or spam texts from lenders? What do you think about these loans being advertised on TV and radio?
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