Caroline Siarkiewicz, director and debt advice expert at the Single Financial Guidance Body, commented:

“The news of the WageDay Advance collapse will cause uncertainty for their customers. While today’s news may tempt some to stop their repayments, it is important they carry on as normal, because customers who have entered into a loan agreement must fulfil it.

“When 11.5 million UK adults have less than £100 in savings, it’s inevitable that consumers have to borrow money to deal with everyday emergencies. Credit can also be vital for consumers making bulky purchases or smoothing income and expenditure. Accessing credit and loans can be complicated and confusing, and with half the UK population not feeling confident in making financial decisions, quick and easy short-term credit can be all too tempting.

“We would urge anyone thinking they need to borrow money to shop around. There may be more affordable options available to you; particularly if you’re clear about how much you want to borrow, what for, and over what timeframe. If you are worried about making repayments you can visit the Money Advice Service website for further information. If you’re struggling with debt, it’s always best to talk to an experienced adviser. The Money Advice Service website has a free debt advice locator tool which will help you find your nearest free debt adviser.”