Money Sense Workshop. What is a payday loan? A pay day loan is a small amount of money lent to you with a high rate of interest with the agreement that.

Money SenseWorkshop

What is a payday loan?

What is a payday loan?

A pay day loan is a small amount of money lent to

you with a high rate of interest with the agreement that it will be repaid once the borrower has received

their next wages.

Generally the type of people who are most likely to take out a payday loan are people that are:

Generally the type of people who are most likely to take out a payday loan are people that are: In debt

Generally the type of people who are most likely to take out a payday loan are people that are: In debt

Struggling to pay bills

Generally the type of people who are most likely to take out a payday loan are people that are: In debt

Struggling to pay bills

In need of quick money

Generally the type of people who are most likely to take out a payday loan are people that are: In debt

Struggling to pay bills

In need of quick money

Looking to potentially make profit

Generally the type of people who are most likely to take out a payday loan are people that are: In debt

Struggling to pay bills

In need of quick money

Looking to potentially make profit

Struggling to provide for themselves an their family

Some payday

lenders you may have heard of

are…

How do they work?

How do they work?

• A loan is taken out by your payday lender and is sent directly in to your bank account.

How do they work?

• A loan is taken out by your payday lender and is sent directly in to your bank account.

• You will usually be given a pay date in which is your set allocated deadline to payback you loan AND interest rate.

How do they work?

• A loan is taken out by your payday lender and is sent directly in to your bank account.

• You will usually be given a pay date in which is your set allocated deadline to payback you loan AND interest rate.

• On the repayment day the lender takes the full amount you owe, plus interest directly from your bank account.

How do they work?

• A loan is taken out by your payday lender and is sent directly in to your bank account.

• You will usually be given a pay date in which is your set allocated deadline to payback you loan AND interest rate.

• On the repayment day the lender takes the full amount you owe, plus interest directly from your bank account.

Sounds simple, right?

How do they work?

• A loan is taken out by your payday lender and is sent directly in to your bank account.

• You will usually be given a pay date in which is your set allocated deadline to payback you loan AND interest rate.

• On the repayment day the lender takes the full amount you owe, plus interest directly from your bank account.

Sounds simple, right?

WRONG.

Some payday loans can lead you into an even larger debt than you were already in.

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 123,159 43,716 £1,652

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 - 123,159 43,716 £1,652

Total payday loan debt handled by Step Change Debt Charity

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 - 123,159 -43,716 £1,652

Total payday loan debt handled by Step Change Debt CharityTotal number of payday loan debts handled by Step Change

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 - 123,159 -43,716 -£1,652

Total payday loan debt handled by Step Change Debt CharityTotal number of payday loan debts handled by Step Change

Number of people with payday loan debts

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 - 123,159 -43,716 -£1,652 -

Total payday loan debt handled by Step Change Debt CharityTotal number of payday loan debts handled by Step Change

Number of people with payday loan debts

Average total payday debt per client

Step change are a debt charity that help people who have taken out a payday loan and are now struggling to pay them back.In the months January to June:

£72,210,340 - 123,159 -43,716 -£1,652 -

Total payday loan debt handled by Step Change Debt CharityTotal number of payday loan debts handled by Step Change

Number of people with payday loan debts

Average total payday debt per client

10 things you should know about payday lenders:

10 things you should know about payday lenders:

1) Interest rates are very high

It may sound cheap at first but overtime, you may end up owing back double what you borrowed. There will also be charges for paying late.

10 things you should know about payday lenders:

1) Interest rates are very high

It may sound cheap at first but overtime, you may end up owing back double what you borrowed. There will also be charges for paying late.

2) Lenders get access to your bank account

Most pay day lenders collect repayments from your debit card. This allows lenders to take payments from your bank without having to checking with you first.

10 things you should know about payday lenders:

1) Interest rates are very high

It may sound cheap at first but overtime, you may end up owing back double what you borrowed. There will also be charges for paying late.

2) Lenders get access to your bank account

Most pay day lenders collect repayments from your debit card. This allows lenders to take payments from your bank without having to checking with you first.

 3) You have a right to cancel payments

10 things you should know about payday lenders:

4) Payday loans are only for very short periods of time

A payday loan is just that – money you borrow until your next payday, repaid all at once. Nearly 30% of borrowers can’t pay back on time and end up borrowing the same amount of money again and just payback the interest. Over time you’re interest will increase you will find yourself in deeper debt.

10 things you should know about payday lenders:

4) Payday loans are only for very short periods of time

A payday loan is just that – money you borrow until your next payday, repaid all at once. Nearly 30% of borrowers can’t pay back on time and end up borrowing the same amount of money again and just payback the interest. Over time you’re interest will increase you will find yourself in deeper debt.

5. Make sure you can afford to pay back

If your budget shows that you can’t payback, try think of otherways to make the money. Can you borrow it off family or a close friend?

10 things you should know about payday lenders:

6) If you don't repay, you may be pestered or intimidated

If you don't pay on time lenders will want to contact you to find out what the problem is. Some lenders may contact you several times a day in order to receive their repayment.

10 things you should know about payday lenders:

6) If you don't repay, you may be pestered or intimidated

If you don't pay on time lenders will want to contact you to find out what the problem is. Some lenders may contact you several times a day in order to receive their repayment.

7) Loans are quick, but customer service can be very poor