Are payday loans a bad idea when it comes to borrowing money?

Published: 3/19/2012

According to a money advice service payday loans are a bad idea when it comes to borrowing money. Consumers may want to use a payday loan service to help with their financial matters, but with extremely high rates of interest for borrowers, it is a really expensive way to borrow money.

Consumers may think that it is nice to have a bit of additional cash or want to make a large item purchase, but with interest rates into the thousands percent, it really is a very expensive way to borrow and consumers should maybe look at an alternative with of credit such as a credit card.

Always check out other options before looking at payday loans, such as credit cards or bank overdrafts. Most people should be able to use these other methods of credit until next month’s payday.

A recent study also revealed that nearly half the UK’s population have problems making their monthly income last until the next payday, and that is why payday loans seem like the right choice to help with their money matters.

See our loans comparison table for the latest offers. Plus, reading our guides and tips pages can offer consumers more detailed information and money saving hints.