High Interest Loans
Before you take out a high interest loan there are some facts you should consider.
Payday loans are essentially short-term loans, so-called because they are designed to give you a little extra to tide you over till your next payday.
However, they are unsuitable for people who are unable to pay bills and debts, and who do not have enough money to live on. They have very high interest rates compared to other financial products, and can quickly get out of control if you have more than one payday loan at a time.
After concerns about problems with payday loans, most payday lenders have agreed to follow a new Good Practice Charter which sets out the rules they have to follow when selling their products.
Home credit, is a type of doorstep lending. Compared to other types of borrowing it is very expensive for anything more than a few days. For that reason it should be avoided if at all possible. To find out why and what the alternatives are contact the Portland Centre.
Doorstep loans are often for small sums, between £50 and £500, but they come with steep interest rates. In some cases the rate can be as high as 1,500% APR. That’s much more expensive than a bank loan or an average credit card.
If you borrowed £200 for a year from a doorstep lender, you’d pay much more interest than if you borrowed on a credit card charging a higher than average rate of 38%.
If you are worried about high interest loans – we have a clear fact sheet which we will be happy to give you.
At the Portland Centre we can suggest alternatives to taking a High Interest Loan:
- Help you understand what you are going to repay
- Help you understand what alternate actions you can take
- Suggest and facilitate a Credit Union loan
- Create a financial plan which will make sure your money is used effectively
- Deal with your debts
It is our pledge that you will come into the Portland Centre feeling terrible, but even after your first contact you will feel so much better because you have taken the first step to ending the misery and eventually becoming completely debt free.
If you need help coping with your debts or just money in general, just call us on 01305 824333 or email us using our contact form or pop in to see a Portland Centre Staff member, to receive immediate assistance.