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Mis-sold Pay Day Loans

The Payday loan trap

If you are one of the countless numbers of people who have taken out a payday loan only to find themselves in a never ending nightmare of astronomical interest rates and spiraling debts then don't despair, there may be a solution to your problem.

Payday loan companies entice vulnerable people with attractive promises such as "INSTANT CASH!" and "QUICK APPROVAL!" but what they usually fail to draw attention to is the sky-high interest rate and the hidden dangers of taking out a quick-fix loan.

Payday loans initially seem like a good idea to many people. You take out a £200 loan with £50 interest on top and pay it all off on when you get paid by your employer. But then that would leave you £250 short for the following month, tempting you to take out another loan, and then another, and so on.

The real problem comes when you find yourself in the situation where you are unable to pay off your payday loan and the outrageously high APR kicks in as it rolls over month after month. Suddenly you may find yourself owing £1000s for essentially borrowing £200. In other words you are trapped in an exponentially increasing vicious circle of escalating interest and debt.

If you have found yourself in this payday loan trap, whether it be for two months or two years, and feel that it could have been avoided had the lender explained the true cost of the loan to you, then you may be able to do something about it. Read on to find out how.

How to solve your Payday loan problems

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