The many ways a payday loan can ruin your life
What impact does a payday loan have on your life? You’d be amazed!
We’ve created an infographic to highlight the many ways a payday loan can have a negative effect on your:
- Eating and drinking habits
- Physical health
- Mental health
- Ability to get a mortgage, car loan and even phone contract
- And more
Check it out…
- Food: 60% of credit users eat less healthily because they couldn’t afford healthy food, that rises to 70% for users of payday loans. 
- Drink: Nearly half (49%) of credit users who drink alcohol said they drink more as a result of their debt, rising to three in five (62%) among payday loan users. 
- Exercise: 65% of credit users do less exercise because they feel too distressed or depressed, this rise to 80% for payday loan users. 
- Sleep: 76% of credit users said their sleep quality declined as a result of the stress of being in debt. This rose to 87% of people with a payday loan. 
- Loneliness: Those who have used at least one payday loan feel more judged and spend more time alone as a result of distress or depression than the average credit user. 
- Mental health: Individuals with payday lending debt, have the highest rate of common mental disorders, at 50% 
- Buying a home: Mortgage underwriters (the ones who decide if you’ll get a mortgage) will reject anyone who has had a recent payday loan 
- New car: A payday loan will have a negative impact on the probability of you picking up a new car 
- New phone: Mobile phone networks who provide the contract or the phone shop you are buying the contract through will do a credit check. You are likely to be declined or pay more upfront when getting a mobile phone on a contract. 
What are payday loans?
Payday loans are unsecured loans, typically with a short repayment schedule (often days and weeks, rather than months) and very high interest rate.
Thanks to tighter government regulation payday firms such as Wonga, The Money Shop and QuickQuid are finding it increasingly difficult to offer loans profitably.
Support after payday loans
If you have taken out a payday loan and you are looking to buy a home, find out more about how to get a mortgage after a payday loan.
If you need help with your finances after a payday loan (or you want to look for a payday loan alternative), go to https://www.moneyadviceservice.org.uk/en/payday-loans