Payday loan crisis warning

With many residents struggling to cope with dwindling disposable incomes and increases in household bills, more and more people are turning to payday loan companies and moneylenders in a bid to make ends meet.

But manager of Larne Credit Union, Arlene Clements said it was vital that people know exactly what they are getting into when it comes to taking out payday loans, particularly because of the dizzyingly high interest rates many of them charge.

She added: “Many credit unions have seen a move from borrowing for the desirables in life to borrowing to cover the necessities. If we could tell anyone who is considering a loan with one of these companies just one thing, it’s to stop and think – why is that money so easy to access? Why are these organisations happy to hand over cash without looking at how or if you can afford to repay it?

“Because these companies make even more money when you can’t afford the repayments, with excessive penalties and charges, and in some cases, will go to extreme lengths to collect it.”