By Daniel Hunter
Around 1.4 million cash-strapped Brits will use payday loan companies this Christmas, according to Money Advice Service research.
The financial pressures of buying gifts for loved ones and making the day special for families is prompting people to borrow money at high interest rates. Christmas in the UK is forecast to cost a jaw-dropping £26 billion this year — an increase of £2 billion from 2013. diesel watches
Payday loan debts have also risen with costs spiralling even more out of control for vulnerable people who need financial help. The last six months of 2013 saw a 42% increase in debt charity Stepchange supporting those struggling to repay these companies. People feel obliged to splash the cash at Christmas time in order to make the festive celebrations as memorable as possible, although this spending can end up haunting UK residents.
Getting a short-term fix to your money problems may initially be appealing for payday customers, but this feeling of relief soon turns into despair by the extortionate interest rates. But financial trouble does not to have to be all doom and gloom as there are helpful alternatives.
Director at Trust Deed Scotland, Mark Somerville, said: "As tempting as short-term credit is, I would urge anyone struggling with debt to seek professional help. Trust Deed Scotland has a wealth of experience when it comes to providing advice and helping to facilitate repayment arrangements like Trust Deeds, that are affordable and sustainable, rather than trying to supplement income with further loans that are only going to exacerbate your debt problem in the long-term."
Join us on