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4 min read · avoid

Short-term high-cost credit: what to avoid

Payday loans, guarantor 'rescue' products and rent-to-own — why they typically make things worse.

The trap Short-term high-cost credit is engineered around your immediate panic. It solves this week and damages this year.

What lenders see Multiple payday lines on your file flag 'cash-flow distressed'. Even mortgage specialists for adverse credit usually refuse files with active payday use.

Better moves - Ask creditors for a payment break (free, doesn't compound). - Free debt charity — even one call. - Council hardship funds and energy grants exist; ask Citizens Advice.