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Alternatives to payday lending

If you are reading this you have been redirected by Leeds City Council from a payday lenders website.

We have done this because payday lenders, although offering a quick source of cash, often cause greater financial problems.

If you can't pay on the due date, they will roll the loan over for up to 3 months, but they'll then hit you even harder in the pocket.

A typical payday loan from a prominent Payday lender of £200 over 30 days would cost £267 to repay in one lump sum. If you have to roll it over for up to 3 months, your debt will rise to £470.

There is an alternative

A £200 loan from Leeds City Credit Union could be repaid over 19 weeks at £13 a week (+ final £8 payment) making total payments of £242.

Typical interest rates charged by Payday lenders can be in the range of 500% APR to 5,000% APR. The MAXIMUM interest rate charged by Leeds City Credit Union is 26.8% APR, isn’t that what’s called a “no brainer!”
If you are having money problems, details of sources of free, independent local advice can be found in the Documents section on this page and the Leeds Money Information Centre website which can be accessed via the external links on this page.

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