Payday loans (or Payday advances) are short term unsecured loans with very high interest rates, often over 2,000%. They’re called ‘payday’ loans as the idea is to tie someone over until they receive their next wage or salary cheque. Many lenders - Wonga, QuickQuid and Payday Express for example - offer fast online applications and customers can receive the funds straight into their bank accounts in as little as an hour. These types of loans do not require full credit checks but instead lenders look at criteria such as employment status, age and access to a UK bank account.
Payday loans can quickly become unmanageable when you can’t repay the initial loan at the end of the term. Missing your repayment will usually result in a charge and it’s
easy to simply take out another payday loan to pay for the debt. This is called ‘rolling over’ and we’ve found that this has led many of our customers ending up in a cycle of debt they just can’t get out of. What was initially a small loan to pay for something like an emergency repair has now become a big problem. Once behind with your payments, you’re likely to receive ongoing phone calls and letters chasing for it which makes the situation even more stressful.
If you’re struggling to repay a payday loan and no longer want to deal with the letters and phone calls from your lender, fill in our simple form on the right and we’ll call you back to see if we can help.
Category: Payday loans