Payday Loans

Payday loans are loans that have been designed to appeal to people short of money before their next payslip. The idea is you get it a loan, then when you get paid you pay it back, but many people for many reasons struggle to pay it back, then once they've got you in their web their humongous will interest rates will ensure you become just another one of their debt slaves paying back interest to them, and never managing to pay back the amount you originally borrowed. The best advice is this AVOID AT ALL COSTS!

So, if you are short of money and have big bills that are due the first thing you need to do is contact the companies you owe money to and explain your situation, they might be able to spread payments over a longer period. If lets say you get a payday loan to pay a big electric bill, then one option is to call your energy supplier and request a pre payment meter is fitted, then you just pay as you go, topping up your card at the newsagents, and the energy company will arrange for the debt to go onto the meter and you it comes off a few pound each week. So you might put £10 on your meter, and in a week £3 might come off the debt and the rest will last to light your home etc.

Here is an article from the Daily Mail about Payday Loans,

http://www.dailymail.co.uk/news/article-2094115/Instant-money-loans-Payday-loan-firms-ruining-lives.html

Pay Day Loans

A lot of people are using pay day loans as they struggle to meet costs of living and Christmas. If you can avoid at ALL COSTS, they charge shocking interest and are making big profits out of peoples hardship.

First of all see if you can save money by cutting back, call your energy suppliers to make sure you are on the cheapest deal, use online comparison sites. Also, there are local credit unions that offer small temporary loans, do a google search 'your home town/city credit union' they often work out of local council buildings. They are highly ethical and charge minimum interest and are owned by members who pay a small fee to join. (more about credit unions later)

In the meantime, here is a good Q&A page about pay day loans on the Telegraph website. http://www.telegraph.co.uk/finance/personalfinance/borrowing/8940249/Payday-loans-your-questions-answered.html