If you need to borrow money and are thinking of getting a payday loan, stop to consider your options. Although easy to set up, a payday loan can quickly turn into a problem debt for many people. It can also affect your credit rating if you don’t pay it back on time.
Borrowing to pay for everyday essentials
A payday loan is almost certainly not the answer if you need the money to:
- pay household bills
- pay rent or a mortgage
- pay back people you owe money to.
If you’re struggling to pay for the essentials, speak to a debt adviser.
They can help you work out a budget, prioritise your debts, talk to everyone you owe money to and help set up a repayment plan.
There are lots of organisations that can help with free, confidential debt advice.
There’s no need to spend money paying a debt management company to help you sort out your money worries.
Money for non-essential spending
Payday loan companies might advertise payday loans for things like nights out, new clothes or other treats.
But if you do this, you’ll end up paying much more than if you waited and saved the money to pay for them.
And if you just can’t wait, there are usually far cheaper ways to borrow.