Release Date: 04-Oct-2013
A payday loan may seem like an easy way to get cash quickly, but this short term high cost credit can be an expensive nightmare.
If you’re thinking of getting one, you need to be completely aware of the risks and should get independent advice to see if there are any other options.
Payday loans can be an expensive nightmare
Payday loans are very expensive. Typically, a £100 loan for a month might cost you £130. That might sound affordable – but only if you can pay it back on time.
If you don’t, the costs can spiral out of control. With eye-watering interest rates, that £100 loan could cost you £1000s in the long run.
Some companies also charge hidden fees if you need more time and will take money out of your account whenever it’s there – even if it’s for priorities like rent, council tax or utilities.
Consider cheaper options like getting or extending an overdraft or personal loan from your bank or building society. Your local credit union may also be able to help you.
If payday lenders are bad, loan sharks are a thousand times worse. If you know of loan sharks near you, report them on 0300 555 2222 or text LOAN SHARK and the lender's details to 60003.
If you’re thinking about borrowing money, please get advice first. KNH has a specialist money and debt advice service that can help, no matter who you owe money to – call us on 01484 414886. Kirklees Citizens Advice can also help - 0844 848 7970.