South Down MLA Seán Rogers (SDLP) has urged people to talk to their local Credit Union, Debt Action NI or banks before falling into the habit of relying on pay day loan services.
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Séan Rogers MLA.[/caption]
The MLA said: “It is well known that many people will struggle to cover the costs associated with the commercial side of the Christmas season. This is particularly true in homes where family incomes have been drastically reduced yet expectations of celebrations matching previous years remain.
The MLA shared his concern that faced with such ‘short-term’ financial pressures many constituents may turn to services such as pay day loans for cover.He said: “There is no doubt the convenient and easily accessible nature of pay day loans make them very attractive to many. For the same reasons people tend to re-use the facilities and they can then become a very expensive financial habit. I would therefore urge people to seek out free financial advice before applying for any loan”.
Citing the local Credit Union or Debt Action NI as two good starting points, Mr Rogers added: Whilst I welcome developments that new regulations surrounding pay day loans are to be implemented in January 2015, I believe they currently do not make financial sense for those struggling on a low income. The market is currently full of glitches from ‘middle men’ rip offs to excessive set up fees. Ultimately customers are comparing making a repayment based on an estimated APR of 5853% compared with local financial services offerings in or around 12%.Debt Action can be contacted on freephone 0800 917 4607 or text ACTION to 81025.
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