Pay Day Loan Debt Help, Advice & Relief

What are payday loans?

Payday loans are short-term loans that can be arranged for small sums of money, available from internet sites and high street shops.

Because interest rates for these loans are high, your debts can quickly get out of control, so it’s advisable to shop around and compare interest rates and charges before borrowing. It is also advisable to make sure you know what the consequences are if you are unable to pay the amount back.

Key facts about payday loans

Payday loans are short-term loans for small amounts of cash

Interest rates are very high

Understand the features of the loan, including how much you will have to pay back, the consequences for failing to pay back and potential charges for not paying it back on time

Payday loans are unsuitable for long-term borrowing

Managing payday loan debt

What to do

Shop around for the best deal on price comparison sites
Don’t take out other debt to cover payday loans
Be wary of rollovers, where the balance is rolled over for another month if agreed with the lender. These can be helpful but they involve additional costs and charges, increasing your overall amount of debt.

What are the interest rates?

Interest rates are typically very high for payday loans
Research how much these loans will cost and how much interest you will have to pay back
Never take out a payday loan unless you’re certain you can repay it in full and on time
Average annual percentage interest rate of charges could be up to 1,500%

What happens if you fall into arrears?

Extra interest and charges could be added to the debt for missed payments
If you fail to catch up with your missed payments you will receive a default notice, where the creditor is able to take further action
Seek impartial debt help to get information on practical debt solutions

How can debt management plans help?

As unsecured debt, payday loans can be included in debt management plans
Debts can be consolidated so you only have to make one single payment per month
The amount you pay is based on your disposable income, so you pay back what you owe at an affordable rate
Avoid taking on further credit during your plan if possible, as this could risk you falling into further debt

What Bailiffs...

Shop around for the best deal on price comparison sites
Don’t take out other debt to cover payday loans
Be wary of rollovers, where the balance is rolled over for another month if agreed with the lender. These can be helpful but they involve additional costs and charges, increasing your overall amount of debt.

Interest rates are typically very high for payday loans
Research how much these loans will cost and how much interest you will have to pay back
Never take out a payday loan unless you’re certain you can repay it in full and on time
Average annual percentage interest rate of charges could be up to 1,500%

What Bailiffs...

Extra interest and charges could be added to the debt for missed payments
If you fail to catch up with your missed payments you will receive a default notice, where the creditor is able to take further action
Seek impartial debt help to get information on practical debt solutions

As unsecured debt, payday loans can be included in debt management plans
Debts can be consolidated so you only have to make one single payment per month
The amount you pay is based on your disposable income, so you pay back what you owe at an affordable rate
Avoid taking on further credit during your plan if possible, as this could risk you falling into further debt

How can you manage payday loan debt?

If you find that you’re relying on short-term high-interest credit like payday loans to pay for essentials, it’s a sign that you could need debt help.

There are various options available to help you manage any debt accrued, including debt consolidation and debt management plans. Get in touch with one of our friendly and professional advisors who will be able to talk to you about your available options.

Final points to consider

Do you want to eliminate all contact from creditors? A Debt Management Plan can help you do just that, reducing your stress and worry immediately.

As a leading Debt Management Company, Fresh Start UK deals with thousands of cases each year and are able to provide our clients with free, confidential advice to prevent debts from becoming insurmountable. Get in touch with us today to find out more.