Avoiding Payday Loans
Data published by the FCA shows that the average interest rate on payday loans is over 1000% per year! Such debt can be very dangerous. Here are some things you can do to avoid a payday loan:
- Ask for a grace period from the people or businesses that you owe money to. Be transparent about your circumstances and be clear on when you can pay.
- Talk to your employer about an advance on your salary.
- Consider taking a personal loan with your bank.
- A final option is to get a cash advance on your credit card. Their annual interest rates are still very high, but lower than a payday loan.
For more on managing your finances and budgeting, tune in to the AKEPB Educates podcast. For support or guidance we are here to help. Please email us on EPBUKInfo@iiuk.org
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