Payday loans could indicate ‘serious debt problems’

Consumers relying on payday loans could have serious debt problems and they may need to readdress their finances, one expert has warned.

Spokesperson for National Debtline Beccy Boden Wilks stated that people relying on this type of credit could end up in a dangerous cycle of debt as they endeavour to pay off the loan with the next month’s paycheque.

“If somebody feels the need to use a payday loan on a regular basis, it’s probably symptomatic of a serious underlying debt problem,” she said.

Ms Boden Wilks added that the interest rate on these short-term loans is quite high and urged consumers to look for cheaper ways of borrowing.

Consumers who are struggling with their finances and are spending more each month than they earn should seek advice and make cutbacks, she advised.

National Debtline offers a debt advice to people in England, Wales and Scotland.

© Adfero Ltd

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