Taking out a payday loan to deal with a money problem can be tempting but we know that it can lead to a slippery slope of debt and stress.
That’s why it’s great to see the Financial Ombudsman Service’s new video, aiming to highlight the dangers of taking out a payday loan.
As the video says, a payday loan might give you short term relief but often only postpones the problem and the loan becomes an extra thing to worry about. We talk to people who’ve fallen victim to this all too often.
Watch the Financial Ombudsman’s video
How can the Financial Ombudsman help?
If you’ve got issues with payday loans the Financial Ombudsman can:
- help you agree affordable repayments on your loan
- stop you being harassed by debt collectors
- deal with creditors when you’re being mistakenly chased for a loan in someone else’s name
- points you in the direction of people who can give in-depth debt advice
The Financial Ombudsman doesn’t give in-depth debt advice but if they think you need they’ll put you in touch with us here at StepChange Debt Charity.
What should you do if you’ve got payday loan problems?
There are four steps you can take to deal with a payday loan problem:
1. Don’t panic: it can feel overwhelming but help is available and things are rarely as bad as they first seem
2. Stop borrowing: many people take out new payday loans to pay off their old loans. This can lead to a quick snowballing of debt
3. Cancel loan payments if you can’t afford them: we’ve got in-depth advice on this in our How to cancel a continuous payment authority article
4. Get free debt advice: we can give you free and impartial advice on how to deal with your debts and help you find a practical solution. Our Debt Remedy advice tool will give you a personal action plan in around 20 minutes.