Paying a debt with payday loan is not the answer

Read through the article below to understand what a payday loan is.

08:21 21 May 2014

Some individuals, just to get out of a sticky and embarrassing situation like making a collection agency stop bugging them, resort to getting a payday loan to pay off a debt.

 

Is a payday loan the solution to my debt problem?

 

Generally speaking it may not be a very good idea. Consider the following before you decide on anything:

 

• What do I need this payday loan for?

 

• Are there any options available offering lower interest rates?

 

• Will I be able to pay it in full and on time?

 

Alternatives to payday loans

 

• Credit Unions – they offer clear-cut loan schemes with very reasonable interest rates.  They are much economical than payday loans.

 

• Get professional debt advice – considering a payday loan to solve a current financial problem does not sound logical and it might be time for you to talk to somebody who can give you a sound debt advice.

 

• It might be time to consider seeking help from family and friends who could spare you a loan without interest.

 

More information about Payday Loans in the UK

 

The ease by which this type of loan can be availed has lured thousands of people needing instant cash to go for payday loans

 

• In a year’s time (2011 to 2012) the number of payday loans availed grew by 109%.

 

• The average amount borrowed increased by £390.

 

• Individuals resorting to payday loans earn an average of £1,320 per month but the average payday loan owed is £1,657 per month

 

• More and more young individuals get embroiled up in debts, particularly payday loans, as numbers of borrowers below 25 years rose to 42% in 2012 from 25% in 2011.

 

No matter what the advertisements say, payday loan is not the solution you are looking to settle a debt.  What you could be looking at is creating more problems than you can handle.