Martin Lewis offers urgent advice for families taking out payday loans
Martin Lewis has given advice to families turning to payday loans as the cost of living crisis rages.
Soaring energy, fuel and food costs, coupled with worries about paying household bills, are driving growing demand for payday loan interest to make ends meet, a new survey has found.
READ MORE – Homeowners urged to apply for major scheme to get £750 off energy bills
For some, they offer loans of last resort which, used wisely, can solve unexpected problems in people’s finances, although according to money-saving expert Martin Lewis, many of these loans have been granted irresponsibly and poorly sold to those who cannot afford it. to be repaid, reports ChronicleLive.
Citizens Advice agrees with Martin Lewis that payday loans are almost always a bad idea and warned against people seeing them as a quick fix to solve today’s problem.
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Martin Lewis advised people to try the following ways to raise short-term cash before applying for a payday loan:
- A credit card allows you to spend without interest if you pay it off in full. A 0% card gives you even more time to pay without interest.
- Check if you qualify for a government budgeted loan at 0% up to £812
- Ask for help from family
- See if your local credit union will offer you a loan
- Consider extending your overdraft – it’s usually cheaper than a payday loan
And if you’re still determined to get a payday loan, he advises the following:
- Borrow as little as possible and budget to repay as soon as possible
- Don’t take out one personal loan to pay off another. If you regularly get payday loans, there’s a problem
- Always check that a lender is registered with the Financial Conduct Authority (FCA). Payday lenders can be bad – loan sharks are MUCH worse