Payday loan companies have increased exponentially over the past three years. As a result of people needing a short term loan to get them through the month, an increased number of payday loan companies have sought to fufil this need. There are both positives and negatives to a payday loan

Positives Of A Payday Loan

  • When someone needs a small amount of credit at short notice then a payday loan can offer the solution
  • If an emergency arises and you need money quickly then a small amount of finance could be borrowed from a payday loans company

Negatives Of A Payday Loan

  • People can find debt quickly snowballing due to the amount of interest which is charged along with any fee’s for missing a payment (interest is charged at up to 4000% APR)
  • Many people use payday loans to cover basic needs and therefore end up creating a cycle of debt which never ends

Before taking a payday loan be sure that you can;

  • Pay back the loan on time
  • Only use this service when absolutely necessary
  • Only use a licenced payday loan company

Debt Support Trust is a registered debt advice charity (SC041902).