Payday loans are a type of short term loan that usually has very high interest. They are a risky way to deal with debts.
Payday loans are meant to be:
- For small purchases before payday
- Between £50 and £1,000
- Only for a few weeks
But if you do not pay it back:
- You owe the outstanding balance
- You owe added interest
- You owe extra fees and charges
Make sure to consider a payday loan carefully.
Interest rates are usually very high. This is the main cause of payday loan debt.
These loans are not a debt solution and can make your financial situation worse.