<< Most Recent Articles

Regular use of payday loans 'could be a warning of financial problems'

Regularly having to borrow money to make up for a monthly financial shortfall could be an underlying symptom of financial mismanagement, according National Debtline.

Spokesperson for the organisation Beccy Boden Wilks says that frequent borrowing would indicate that a person is "overcommitted" and is paying more on their debts than they are earning.

She advises anyone in this situation to seek debt management advice and to take a serious look at his or her finances. Ms Boden Wilks also says that there are several alternatives to taking out short-term, high-interest payday loans that could make a considerable difference.

Alternatively, she advises getting in touch with your creditors and attempting to negotiate smaller payments each month.

Ms Boden Wilks noted: "If somebody feels the need to use a payday loan on a regular basis, it's probably symptomatic of a serious underlying debt problem."

According to the financial website Moneysupermarket.com, the take up of payday loans has increased by 55.4 per cent since September last year.

See how much you could save with a debt consolidation loan from Lombard Direct

© Adfero Ltd

20/05/2008 14:47:56

Most Recent Articles