Avoid getting fleeced this Christmas

Posted by: Carlene O'Carroll on December 03 2014 | Tagged: Products, Services

 

The festive period can prove costly - on average Britons anticipate spending around £500 this Christmas. Citizens Advice report that there was a 39% increase in the number of people seeking online help with debt problems between December 2013 and January 2014, compared to the same time in 2012. 1

If you need to borrow money to pay for Christmas and are thinking of getting a payday loan, stop to consider your options. Although easy to set up, a payday loan can quickly turn into a problem debt for many people. It can also affect your credit rating if you don’t pay it back on time.

 Payday

It’s not just the cost of Christmas that has recently stretched the purse strings. Rising prices for energy, food and housing is putting extra pressure on people’s finances.  Advice organisations are finding that payday loans, credit cards and overdrafts are being used to top up people’s income as wages remain static. 

The Money Advice Website states:

“A payday loan is almost certainly not the answer if you need the money to pay household bills, rent or a mortgage, or to pay back people you owe money to. If you’re struggling to pay for the essentials, speak to a debt adviser. They can help you do a budget, prioritise your bills, talk to everyone you owe money to and see if you can agree a repayment plan.” 2

 

Payday loan companies often advertise using payday loans for things like nights out, new clothes or other treats.

Before even considering a payday loan why not try one of these alternatives...

 

  • Apply for an affordable loan from Scotcash - We provide affordable finance for people who find it difficult to get credit from banks and other mainstream lenders. It doesn’t matter if you are working or in receipt of benefits, our loan advisors will help you work out an amount you can afford to repay on a weekly, 2-weekly or monthly basis depending on your income. One of the additional benefits of taking a loan with us is that if you are struggling to make payments you can opt to take a ‘Payment Holiday’ * Click Here to apply for a loan today.

 

  • Borrowing from a Credit Union - A much more affordable alternative to a payday loan is a loan from a credit union. There’s a cap on the amount of interest they can charge – 3% a month or 42.8% a year APR for England, Scotland and Wales. Scotcash can also help you set up a savings account with your local Credit Union to help you pay for the cost of next Christmas.

 

  • Help from the Scottish Welfare Fund - if you’re struggling to pay for essentials like food, heating and clothes you may be able to get help from the Scottish Welfare Fund. They can provide: vouchers, fuel cards, travel tickets or furniture and food vouchers. If you live in Scotland, click here find out more about the Scottish Welfare Fund. 

 

To find out where your money goes each month why not use the Money Advice Service Budget planner , keep a spending diary or use the cut-back calculator to see where you can make savings.

 

If you’d like someone to do this on your behalf or to receive expert debt advice, make an appointment with one of our Money Advisors for free, confidential advice. There’s no need to spend money getting a debt management company to help you sort out your money worries.

 

1 https://blogs.citizensadvice.org.uk/blog/household-debt-problems-up-39-this-christmas/

2 www.moneyadvicedervice.co.uk

* Terms and Conditions apply