Payday Lenders

Payday Loans are the fastest growing form of borrowing for the 3.5 million people in the UK struggling to make ends meet between pay packets.

Companies offering short term loans are all over the press and TV. They promise ready cash even for people with poor credit ratings.

Unless you are really good with money, payday loans have a habit of spiralling out of control.

What you may not expect when you take out your first loan is that the payday loan company will keep offering you more money. They will make it sound so simple and so tempting and it can be hard to say no.

And they will automatically take their money straight out of your bank account – whether you can afford it or not. It’s easy to see how you can end up in trouble.

There are alternatives:

  • If you are borrowing money to pay a bill or your rent – get in touch with the people you owe money to – or seek advice on dealing with your debts.
  • Join a credit union – they can help you save and lend you money at a reasonable rate when you need it.

Get a copy of our free guide from your local advice service, library or housing provider.

© Financial Action & Advice Derbyshire 2014