With payday loan companies now setting out to specifically target students, we round up the reasons why you should always say no.

Payday or any other type of short term loan should NEVER be used, even as a last resort.

Ridiculous high interest rates

The interest rates of payday loans are ridiculously, unbelievably high. Most average around the 1000% APR mark while even the ‘better’ ones come in at a huge 600-800%. It all means you’ll have to pay back a lot more on top of whatever you borrow, even if do pay back on time.

Fees

It’s not just interest rates either, companies may charge various fees for things including early payments, late payments, account creation and credit checks.

If you can’t pay, you’ll have big problems

The biggest risk with the payday loans is not being able to pay them back on time which will leave you in huge financial difficulty, many more times worse than you were in before taking the money out. High interest, fees, debt collectors, court cases and bailiffs could all be involved.

Ask friends and family instead

Given most payday loans are a few hundred quid – if that – then asking friends or family is by far you best bet in the first instant. You will still be expected to pay them back of course, but there won’t be any high interest or fees.

Get free financial advice

There are lots of places to get free, independent financial advice to see where your money problems lie and what’s best to do about them. Try your University or Student Union, as well as the government backed Money Advice Service or the Citizen’s Advice charity.

Turn to your University’s hardship fund

If things get real bad financially, your University may have a Hardship fund to call upon. This will be a loan (will have to be paid back) or grant of money to help you out without the high interest, fees and problems that come from payday lenders.

Too late? Pay it back asap

Already taken out a payday loan? Pay it back as soon as you can, even if you have to borrow from others (such as family and friends) to do so.