Pay Day loans don't stop at Christmas
The content in this article may now be out of date. Please try searching for a more recent version.
Pay Day loans might seem like an easy way to pay for Christmas this year, but what happens after Christmas is easy to forget. Bromford Money Advisor Jill Woolford talks about the dangers of taking out a Pay Day loan for the festive season and beyond.
Christmas is fast approaching. The kids are glued to the television and with every advert comes the inevitable: “Mummy/Daddy, I want that for Christmas. Please can I have the dress-up doll with all the accessories? Please can I have that computer game? All my friends will be getting one!”
If only Santa really did exist.
All over the country people are worrying about what to do for Christmas. Whether it is the latest games and toys for the children, getting enough food in to last over the festive period or even finding somewhere warm to sleep during the cold winter months. Money is on everyone’s minds and temptations are thrown at us at every turn.
In this modern era of mobile phones, internet, social media and TV packages it is almost impossible not to come across the lure of the pay day loan. Offering a quick fix to all your money worries via text message, email, TV advert and computer pop ups. Why would you not give yourself a Christmas to remember with up to £1,000 in your bank within 15 minutes?
Sounds like a good idea?
Well, if something sounds too good to be true, it often is exactly that. When the money is spent and the tree is safely packed away back in its box, the time comes to start paying back the loan. All of a sudden you find the original loan has almost doubled and the friendly ‘pay us back in small weekly installments’ doesn’t seem so easy to manage. Struggling to make payments, other bills start to fall by the wayside and you find yourself surrounded by debt letters. Stress levels rise as you wonder how on earth you are going to pay the rent or even buy food. Many people are faced with poverty, hardship and, in some cases, homelessness due to the high interest rates on growing debts.
Does this seem a little extreme?
Unfortunately not. From personal experience as money advisors, my colleagues and I see this type of situation all the time. Lots of people fall into this trap, believing that they can afford these loans. A never-ending cycle of borrowing and getting into debt means that for some there seems like there is no way out. The law is changing and steps are being made to stop payday lenders taking advantage of people, however there are so many people struggling financially that the temptation can sometimes be too much. If you or anyone you know are struggling with payday loans, there is free confidential independent help available.
Bromford Money Advice - 0330 123 4034
Citizens Advice Bureau - www.citizensadvice.org.uk
Money Advice Service - www.moneyadviceservice.org.uk
Step Change - www.stepchange.org
We have a range of information and help on the dangers of pay day loans and how you can avoid them in our dedication section. To find out more, click here