Pay day loans – what they will do to you!
You have seen the TV ads – Wonga.com, Quick Quid etc etc, and you may have thought the concept a good idea – quick and easy access to short-term loans. Helpful if you get into a sticky spot, or you need some cash, right?
Well it is a good idea – for the lenders!
With interest rates often over 2500% they are making a killing.
They will also kill your credit rating if you ever take one out… for example, you will become instantly unmortgageable.
You see, the mortgage company takes the view that if you are demonstrating that you cannot even handle your finances to make your salary stretch the month, you are likely to have trouble paying their mortgage. So they won’t give you one.
Whilst your credit rating depends on you having some borrowing, you need to show that you are borrowing wisely and for the right reason.
Pay day loans are not a good reason! Stay well away from them…