Options before getting a payday loan

Published on August 13, 2010 by admin · No Comments

Consider the options before getting a payday loan

According to insolvency trade body R3, as many as 70,000 people are considering borrowing money from a payday loan lenders or loan shark due to not being able to get get credit elsewhere. It is suggested that there are around 960,000 people struggling with debt and have not sought help to ease their financial problems.

Today there are many charities and organisations that can help you if you are struggling with debt such as the CCCS and Citizens Advice, these organisations can help you assess your finances situation and give you advise on how to manage your money better. Another charities which can assist you is Turn2us.org.uk which specialise in helping people find out about all of the benefits, grants and low cost or interest-free loans on offer.

Before considering in taking out a payday loan you should consider carefully if you do actually need and are there any other alternatives, consider writing down everything coming in and out and where can you tighten or save off a few pennies including ringing around your existing providers and see how they can help. If there is no other choice or an emergency double check with the social services and see if you can get a crisis loan first as loans are interest free.

You can get a crisis loan from the social services as long as you have no savings and is facing an emergency, this is open to everyone where the loan is based on something that will affect the lives of you or your family. If you are on benefits there is also a budgeting loan that can cover costs of essential items such as school uniforms. It is a fact that many people don’t claim money that they could have claimed for or did not know what they were entitled to, just check with the social services and it can make a difference to your day-to-day finances.

If not only then consider getting a payday loan. Ensure that you can pay it back and that you can still cope for the rest of the month without taking out another one.

Payday loan companies want you to keep coming back so ensure that when taking one out that it is only for an emergency cases only.