Debt cycle ‘carries on’ with payday loans
May 21, 2008 by admin
Filed under News, News-Loans
Regularly using payday loans to get through until the next paycheque can lead people into a spiral of debt, National Debtline has warned.
Spokesperson Beccy Boden Wilks said that payday loans can have high interest rates and consumers can often find cheaper borrowing options.
Ms Boden Wilks warned that people using payday loans on a regular basis may have a more serious underlying debt problem and advised them to have a close look at their budgets as well as to possibly seek advice on how to deal with their debts.
“If you’ve run out of money [ahead of your next paycheque], so you feel that you need to use these sorts of services, then there’s obviously a problem,” she commented.
Ms Boden Wilks added that people using these services should review their spending and budgets.
The take-up of short-term payday loans has risen by 55.4 per cent since last September, according to Moneysupermarket.com.
Sometimes Payday Loan can help us getting cash almost instantly, but we need to underline that payday loan is not for a long term need. We must consider the real fact about payday loan before get fall in to debt cycle.
As with anything else, a payday loan needs to be treat with respect, as long as they are paid off when due there’s no reason why they cannot be used in the struggle against the current credit crises.