A payday loan is a risky, quick-fix form of credit that can make it too easy to fall into further financial debt. Most times, financial experts will not recommend taking out a payday loan as it can quickly make your debts go from bad to worse.
If you do decide to take out a payday loan, it’s important that you try and pay it back as quickly as you can in order to avoid interests and charges building up.
Dangers of the Payday Loan
A payday loan usually comes with extremely high interest rates. Not only that, but if you can’t pay back the loan in the agreed timeframe, it can lead to penalties and more fees being added on.
Another danger of the payday loan is that it usually comes with short repayment dates. Although there are a few companies out there that may allow you to have a few months, most payday loan companies will only give you until the end of the month or your next payday to pay them back.
Payday loan companies are also given direct access to your bank account. This means that your bank information may be shared with hundreds of other companies and they may attempt to take hidden fees straight from your bank account.
If you’re struggling to pay back the debts from a payday loan, make sure to give us a call. Our expert money advisors are ready to listen to your personal financial situation and inform you on all of the debt solutions that are available to you. Call us at 0800 088 2303.