Payday loans under pressure to lower interest rates

Many people are already struggling when they turn to payday loans but find themselves in more trouble.

10:34 05 July 2013

Recent news has mentioned that the payday loan industry will sit down to a summit regarding the proper business behaviour. There were complaints regarding the amount of interest charged to people and confusion about the terms that made it difficult for people to make an accurate comparison between lenders.

One of the most concerning things though, is the sheer number of people who feel they need to rely on payday loans in order to make it to the next payday. Here are a few ways you might be able to avoid that if there is an unexpected situation.

• Social fund—you may qualify to receive assistance from the social fund, depending on your circumstances. This probably won’t work if you need the funds immediately, but if you have a little bit of time this could save you from payday loans and the possibility of going more in debt.

 

• Friends and family—sometimes this isn’t the best option for people, but occasionally you might be able to receive help, even a loan from friends and family with interest might benefit you more than getting payday loans.

 

• Pawn shop—you might have things that you no longer need or use which could be sold quickly to a pawn shop. That might allow you the temporary funds you need without the backlash of spiralling into debt with payday loans.

 

• Online sales—if you have more time to try and come up with money, you might be able to find things around the house such as gifts you’ve never used and sell them on reputable and legal sites to raise the money you need. If you have a talent which allows you to create items, you might be able to make your own items and sell them online or to local shops for extra funds rather than relying on payday loans.