There are 'many options' for those in debt

People considering payday loans need to take a step back and see where they can make savings in their expenditure, it has been claimed.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management, said that people should list all of their outgoings, decide which ones are not essential and then see whether there is still a shortfall.

She said it may also be beneficial to view a personal credit rating, as this contains information on all late payments, and any county court judgements CCJs or bankruptcy.

"All this information will stay on your record for six years. If you have a clean record – i.e. all payments made on time and not overdue or CCJs - then apply for a zero per cent credit card, with a view to [repaying] the expensive debt. However, you must then close your other credit cards - especially if you are prone to overspending," she advised.

If this is not an option, those considering payday loans may want to think about talking to a debt charity.

Jason Riddle, co-founder of Save Our Savers, also added that payday loans should be a last resort after all other credit options.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-08-04 15:00:13 © Moneyextra.com