Payday Loan Debt Help & Advice


Payday loans have long been considered controversial, often used as a quick fix for those who find themselves struggling to pay for unexpected costs. That creates the perfect condition for payday lenders to offer short-term loan that can leave borrowers with serious debt problems.

In this guide we look at the payday loan, including what it is, why it’s so easy to fall into payday loan debt, and which debt management solutions can help you get on top of your loan amount.



What are payday loans?

Payday loans are easy to find, they’re advertised everywhere and are available at the click of a button.

That’s part of the reason thousands of people across Scotland have turned to payday loans.

If used as a last resort, and used properly, a payday loan can offer support when needed, however, if considering this option, it’s important to carefully check the small print of any agreement.

This type of loan often comes with excessive interest rates, high late payment charges and very short repayment periods, causing people to become reliant on them to help them through the month. This in turn becomes a vicious cycle that causes high levels of financial distress.

Write off up to 70% of your unsecured debt – Check if you qualify

Why do people use payday loans?

There are several reasons why people may turn to payday loans.

Financial emergencies before payday

Unexpected life events are more often than not the reason turn to this loan type in a bid to find a little financial breathing space.

From relationship breakdowns to redundancy and unemployment, thousands of people find themselves seeking financial aid for a number of different reasons out with their control.

Life is unpredictable, and people are hit with emergency expenses every day.

As such, payday loans are also often used in situations such as emergency house or car repairs.

Paying other bills (like credit card debt)

The most common reason people use this type of loan is to help cover high bills.

Inflation is causing prices to rise all the time, but for many their income isn’t enough to keep up with this – fueling the need for a payday loan just to get from one payday to another.

However, for some people payday loans can become a method of repaying another debt that has gotten out of hand.

A massive thank you

“I’d like to say a massive thank you to Carrington Dean for helping me. It feels like I have control of my life again.”

What are the dangers of a payday loan?

Despite seeming like an acceptable fix when facing money worries and payday is just around the corner but it’s important not to underestimate the impact it can have on your credit score.

Failure to pay on time can cause serious issues and send your finances into a crippling downward spiral.

When considering a payday loan you should always consider the potential pitfalls you could face.

High interest and annual percentage rates

It’s no secret that payday loan companies are known to charge the highest possible interest rates.

Failing to repay the loan within the agreed timeframe can also trigger penalties and fees which can quickly cause further financial distress.

Short windows to pay back a payday loan

Payday loans are often required to be fully repaid in a short period of time – typically within a month or on your next payday.

It is imperative to check the small print of any financial agreement to ensure you’re aware and able to meet the contractual repayments.

Again, failure to make these repayments can result in serious problems for the borrower.

Continuous Payment Authority (CPA)

If you apply for a payday loan online, in many instances you will be required to provide the lender access to your bank account details.

People often don’t take notice of this until the lender takes unexpected deductions from their account – this is often to cover fees that were missed in the small print.

Your bank account details can potentially be shared with hundreds of other companies, which again highlights the importance of reading every detail in your proposal before agreeing to the loan.

How payday loan debt can be avoided

Payday loans might seem like a good idea at the time when you’re living with money worries, but there are ways to avoid using them in the first place.

Budget effectively

Budgeting in itself is another great way to make sure you always have funds to cover everything.

Being careful with your money allows you to make it go further, which in turn allows you to within your means.

Save money for emergency payments

You can also avoid the need for a payday loan by adding an emergencies category to your savings budget.

Saving even the smallest amount each month can lead to having a small nest egg should you ever need it.

Don’t impulse buy with your credit card or bank card

Avoiding impulse purchases can save you hundreds of pounds a month, giving you more money to not only put aside for emergencies, but to ensure you won’t ever be caught short for bills.

Look at alternative solutions to your debt problems

It’s very easy to make rash decisions when you’re in a panic about your finances, so it’s always good to look at all your options.

We always advise to take a look at your situation as a whole as you may be able to find an alternative that won’t cause you financial distress.

Find out if you qualify to write off up to 70% of your unsecured debt!

Where can I get debt advice if I’m being pursued by a payday lender?

It can be hard enough just keeping up with your regular bills like credit cards and utilities. When you have a payday loan to pay on top of that, things can quickly spiral out of control.

Payday loan borrowers can always turn to Carrington Dean. We’re Scotland’s debt specialists, and we’ve helped over 45,000 people deal with debts like payday loans.

Our team of debt experts will get to know your situation, run you through your options, and match you with the right debt solution for your situation.

For free debt advice and the support you need to deal with payday lenders, reach out to us today. Our phone number is 0800 043 1320.