You could end up in a dangerous cycle of debt if you take out high interest short term loans to supplement your paycheque.
Stop right there!
If you're considering taking out a payday loan, watch this video before you do anything else.
To reveal the real truth about payday loans, what they should NOT be used for, and to discover the little known trap the payday lenders want you to fall into, click play below.
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CAB says steer clear of instant cash loans
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.
Taken out a short term loan? Good luck getting a mortgage!
If you’ve taken out a short term loan from a payday advance provider any time in the last three months, choose your mortgage lender with care – reports have emerged that more and more home lenders are using payday loans as an excuse to reject your loan application.
Peer-to-peer loans offer alternative to payday lending
While most will associate peer-to-peer lending as a way to voice your discontent with high street’s banking institutions and how much harder they’ve made it to access credit, using a crowdsourced funding option can result in much better interest rates.
Take action early if you face debt problems, experts say
Experts say that you need to act sooner rather than later if you’re facing debt problems, especially as rent arrears could see you having to find a new place to live – and in a hurry.
Short term loans carry long term ill effects, experts warn
While it’s tempting to take out short term loans in order to resolve your immediate financial issues, the long term effects of this type of borrowing can often have quite ill effects, financial experts have recently warned.
Learn more about credit unions before taking short term loans
So you’re short on cash and you’re stuck between looming bills and your next pay period, and you think you might have to take out a payday loan – but did you know that relying on a credit union instead could lead to much more affordable lending?
More consumer protection is needed, financial expert says
One financial expert has said that the biggest problem to be had with payday lending is that there are simply not enough protection measures in place to prevent consumers from falling into massive debt as a result of taking out too many instant cash loans.
Credit unions allocated £38m for infrastructure upgrades
£38 million has been allocated for credit unions to be used for improvements to their IT systems and infrastructure by Lord Freud, the welfare reform minister, it was recently revealed.
Have the affluent been turning to short term loans as well?
New evidence has been uncovered that it’s not just low income earners that have to turn to payday loan providers as a result of the current economy, as a new study shows that affluent professionals, such as accountants, lawyers, and doctors, also turn to providers of short term loans as well.