Wrexham Trading Standards are aware that some residents have recently had leaflets through their doors from a high cost credit company offering short-term loans.
Often referred to as ‘payday loans’, this type of borrowing can be seen as a quick way to get extra funds as they’re very easy to get, but interest rates can be extremely high and they can cause significant financial problems for people.
If you’re considering taking out a payday loan, please consider all your options first. There may be other ways for you to sort out your short-term money problem, so think about the alternatives before you borrow from a payday lender.
Credit unions can help people struggling with their finances and offer an alternative to payday loans or doorstep lending. You can view your local credit union’s website here.
Many payday lenders are authorised by the Financial Conduct Authority to offer credit, but it’s important you understand the full cost of your repayment, the number of payments you’re required to make, and the repercussions of not making a payment.
If you decide to get a payday loan, shop around and compare the interest and charges before you borrow. The Citizens Advice website has information and advice to help you do this.
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