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January 24th: PayDay Loan Danger Day

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January 24th has been dubbed "Payday Loan Danger Day" by Coast & Country, a housing and regeneration company based in the North-east of the UK. Research carried out has revealed it to be the day that many people will be tempted to take out a payday loan as they struggle to make ends meet following the often expensive Christmas holiday season.

Many people will have been paid early before the Christmas holidays and, as a result, will find it difficult to live on their wage until the end of January. For a lot of people, living month to month is difficult enough without having to stretch a wage an extra week, which is the position a lot of people will find themselves in this month.

The final week of January is predicted to be the toughest and may see people turning to payday loan lenders for a quick fix to tide them over until their next wage. With payday loan companies not requiring credit checks and offering short-term loans with money often deposited the same day, thousands of people are expected to turn to them to see them through until the end of the month, despite the high interest rates.

The dangers of payday loans

Workers from Coast & Country have taken to the streets to warn people of the dangers associated with lending money from payday loan companies and are highlighting more cost-effective and safe ways to borrow money if making their final wage of 2013 stretch until their next payday is not an option.

For some people, taking out a payday loan without understanding how much interest will be added and the fees associated with the lending could see them in more financial difficulty than they were in to begin with if they are unable to pay back the full amount on time.

There are countless horror stories out there from people who have found themselves in a downward spiral of debt and more debt as they turned to payday loans to try and get them out of a tight financial situation one month, and ended up rolling over the loan month after month, adding more interest and lending fees on top of the original loan taken out.

The fear is that Payday Loan Danger Day will hit thousands of people who find themselves out of pocket at the end of the month, and Coast & Country have taken the step to warning people in advance and letting them know that there are alternate solutions out there without having to turn to a payday loan lender to help them out of a crisis, only to find themselves stuck in another.

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