Do your best to steer clear of instant cash loans from payday advance lenders, says the Citizens Advice Bureau, after finding that more and more Brits are finding themselves landing in hot water after taking out a payday loan.
Epsom and Ewell CAB says that people need to be wary of easy access to same day loans, as lenders are giving away cash to borrowers who cannot possibly repay the loan without incident. Those unable to repay a loan on time often have to take out additional cash in order to do so, according to the CAB, trapping them in spiraling debt with no way to pay for everyday items or basic essentials.
CAB’s bureau manager for Epsom and Ewell, Tom Sheriff, said that all too many borrowers are being enticed by adverts from payday lenders that downplay – or outright ignore – the consequences of taking out a payday loan. Borrowers in need of cash in a hurry will only see headlines that read ‘borrow as much as £1,000 today’ or ‘get your cash online in 10 minutes’ and not place any thought towards the costs when it’s time to repay the loan, Mr Sheriff added.
Payday lenders are not providing emergency cash for no benefit to themselves, the bureau manager said, out to make money, and they’ll get their money from borrowers however they can. This includes fixed fees as well as massive penalties for going into default, and Mr Sheriff said that lenders charging fees for sending reminder letters is a common practice as well.
Brits have been advised by the CAB to think long and hard before taking out a payday loan. If indeed you do take one out, the Bureau urges you to read the small print and make sure you understand what exactly it is you’re getting yourself into.