Cost.co.uk Responds to New Figures about Payday Loan

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Figures show that the payday loan industry is booming.

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Being realistic and honest about the amount you have borrowed plus the interest you owe is a step in the right direction.

According to new figures from the Office of Fair Trading, the payday loan market was worth up to £2.2 billion in 2011/12, which amounts to around 7.4 to 8.2 million new loans. In light of this Cost.co.uk has released a tip-sheet advising how to deal with debt and finance problems.

  •     Firstly, it is important to work out how much you owe. Being realistic and honest about the amount you have borrowed plus the interest you owe is a step in the right direction to regaining control of your debts.
  •     In order to find the most out about your debts you should obtain the following information: name and address of the creditor, the account or reference number and a copy of the original loan agreement signed.
  •     Next it is important to prioritise your debts. Some debts have larger consequences than others if you do not keep up repayments, for instance mortgage loans. If repayments are not met then there is a risk of losing the property.
  •     The larger more prioritised debts should be deemed as most important. This includes housing, gas and electricity bills, council tax, court fines and child maintenance payments.
  •     Those that are regarded as non-priority debts are water charges, student loans and money borrowed from friends or family.
  •     Now it is time to establish how you can pay debts back. List all salaries and income over a six month period and work out an average. Ensure to include any benefits you receive or any regular additional income such as lodgers or other further contributing factors.
  •     Work out a realistic budget to pay the most important debts back. Contact lenders and arrange a long term viable scheme to repay the money. Meanwhile, contact the non-priority providers and ask if it is possible to freeze interest as you arrange to deal with debts.
  •     Make a note of all telephone calls or meetings and ensure to prove a final agreement.

Based in Essex, Cost.co.uk is one of the UK’s leading price comparison sites. Allowing their online customer’s access to companies offering a range of insurance, financial and travel services, the firm specialise in providing a personal experience. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.

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Ben Austin
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