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Pay Day Loans

Pay day loans are short-term, small loans which charge very high interest rates. In theory they are supposed to be used as cash advances on wages, which people then repay once they have been paid, but we have seen students taking them out and repaying them when their student loan/grant comes in. These types of loans are readily available online and on the high street. 

You are normally given a month to repay the loan and in most cases the loan company will automatically debit your bank account for the payment on an agreed date. If you have no money in your account the company will continually attempt to take it, which may cause you to be charged by your bank. 

Unfortunately, more and more students are resorting to take out pay day loans as these type of lenders target students with information on their products. This can seem like an attractive short-term fix and an easy source of extra cash but we would recommend you avoid this type of borrowing and look at other options that may be more appropriate.

Money Support Unit staff have seen first hand how students can get themselves into further difficulty by taking out pay day loans and would always encourage you to come and speak to us first in the Money Support Unit, 1st Floor Neuadd Rathbone. We have experienced non-judgemental staff who will be able to advise you.