. You probably couldnвЂ™t repay that amount вЂ“ plus the high interest вЂ“ the next month if you couldnвЂ™t afford ВЈ300 this month to buy a new washing machine or pay a garage bill.
So individuals wound up rolling the mortgage or borrowing from 1 loan provider to settle another or otherwise not having to pay concern bills such as for example council taxation and resources.
The effects had been frequently impossible quantities of financial obligation.
Escaping from the pay day loan trap
If you should be presently borrowing in one or higher payday loan providers, it could be quite difficult to flee from their clutches.
It might appear frightening to share with them them this month and you need a repayment plan over a much longer periodвЂ¦ but you canвЂ™t keep paying these debts if that leaves you so short you have to borrow again to get through the next month that you canвЂ™t afford to repay.
At some time it has to quit, and on a monthly basis things become worse, so that the sooner you do this the greater.
The cash advance cap introduced in 2015 means lenders canвЂ™t continue incorporating interest or fees so that your financial obligation balloons away from control.
Browse things to do whilst you start asking for refunds if you are still using payday loans вЂ“ a temporary DMP may be your best option, letting you pay less to your debts.
Asking for compensation вЂ“ have a refund for the interest you paid
You might have the ability to reclaim cash even though you repaid your loans on time!