More families turn to pay-day loans

Homeless charity Shelter say a million people have turned to 'payday' loans to pay for things like rent.

With three weeks to go until payday, for some its the realisation that ends won't meet.

Research shows that more and more people are turning to 'payday' loans to cover the bills, but, people are now having to use other payday loans to make the repayments on others.

Shirley Shacklady, Financial Advisor with Aegis Law in Hoylake, helps people who're finding themselves in debt:  "We're seeing more and more individuals and families who have taken out many "Payday Loans" that find themselves trapped with nearly all their monthly income going to pay the loans with very little left to pay for food, heating and other daily essentials. 

"And with the cost of Food and Fuel increasing families are finding it harder to cope.

"There are a number of steps that you can take to stop yourself getting into a position were you may need a "Payday Loan"":

1. Create a Budget Plan

2. Stick within your spending budget - you will soon see your savings grow.

3. Don't be tempted to stray from the plan. Have self discipline.

"If you find yourself in a position were a loan is needed there are alternatives options to consider; banks might extend an overdraft which would be cheaper than a loan, local Credit Union's lend money at lower rates, old items you don't use could be sold to a pawn shop, or even just asking friends or family for a little help."

Shirley has also put together 10 steps to help control debt;

  1. Acknowledge that you have a problem
  2. Work out a personal budget – what you have coming in and what you have going out.
  3. Prioritise your debts – mortgage, rent, utility bills and council tax come first, then your other debts like credit cards etc.
  4. Work out what you can afford to pay.
  5. Work out when you've got money coming in, and when it's going out.
  6. Talk to your creditors – don’t be afraid, offer what you can afford.
  7. Discipline is crucial – stick to your budget and review every three months.
  8. Become a smart shopper – use coupons, BOGOF offers, buy own brands. Also shop around for energy deals.
  9. Best plans do go astray – make sure you manage your budget, and re-asses it.
  10. Stop using shopping as a form of Therapy.

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