One free debt advice service in Northumberland has warned people to be careful with their lending activity, urging them against taking out instant cash loans if they cannot afford to repay them easily.
Approximately 3.5 million Brits may end up choosing to take out short term loans and other forms of short term lending over the next six months as they recover from overzealous spending in the run up to the festive season, estimates suggest. However, Dawn Advice has said that if you’re already in debt, taking out another loan could only result in more serious problems down the road.
Liz Chadwick, chief executive for the debt advice service, remarked that as the chickens come home to roost in the aftermath of Christmas, January has always been a financially difficult month for Brits. Store card and credit card bills begin arriving in the post, Ms Chadwick said, and many households find their finances stretched to the breaking point by the end of January.
This can make turning to a payday advance provider an attractive option, as these providers of short term loans are experts in helping Brits out when they’re in a financial bind. However, while payday lenders can and do offer a valuable and much-needed service when it comes to a quick infusion of emergency cash, Ms Chadwick said that they may not be the best solution for every British household’s financial situation.
Payday loans are indeed ideal for helping to pay for an unforeseen expense that you could otherwise pay for if only you weren’t caught out between pay cheques, but if you’re already in debt, taking out one of these loans is at best a temporary measure and at worst will only make matters worse, experts say.