Payday loans can certainly provide a little bit of financial release if you need to have some sort of financing between paycheques. However, these loans are extremely dangerous if you do not consider a few things before you apply to them. As such, consider these various risks.

There are certain sizeable necessities that need to be acquired such as a car or a home. This requires getting a loan to be able to obtain these. Loans, if managed and paid for on time, will present no inconvenience. If you obtain a loan, you could also be paying or getting a payment protection insurance or PPI and can be eligible to make PPI claims.

The Banks & Building societies of the UK are suspected to have mis sold PPI to over 20million people in the UK in the last decade – but what is PPI, why is it mis sold and most importantly, how can you claim it back? PPI is sold as insurance when you take out a loan, If you lose your job or have to take time off work because of sickness – recovering from a car accident for example – and are unable to make repayments on the loan then the policy kicks in and your payments are covered. The banks have mis sold these policies to people who didn’t need them, for example people who had existing cover, people who didn’t need PPI (retired people) or people for who the policy didn’t cover because of exclusion clauses – a typical example would be a self employed person. If a bank sold a policy to someone in this situation then they have mis sold the policy, and the customer can claim it back.