Thousands of people
use payday loans as a quick and simple way to get the emergency cash they need.
However, we often hear of many stories from people who have had bad
experiences, because they did not take the time to be aware of their rights and
responsibilities with this form of credit.
Not all lenders are
reputable, and it can be difficult to tell by simply looking at a website. As a
result, it is very important that anyone considering a payday loan takes the
time to understand the terms and conditions, the interest rates and costs of a
loan, and to make sure they understand their rights as a borrower, and their
responsibilities if they decide to go ahead with the loan.
Most people know that
payday loans are a fast and relatively easy way to access funds when they need
them. However, it is always best not to rush into this form of credit, even in
an emergency. There will be time for you to make sure you are dealing with a
good lender who operates fair lending practices, and who is meeting the
official standards for lenders.
Always check this and
be sure you understand your loan requirements before you finalise your application
or agree to borrow any money.
Your main
responsibility is to make sure you can repay the full loan amount, plus
interest and any associate fees, by the specified date. The repayment date is
usually your next pay day, when you receive your wage. You must always do the
necessary calculations to make sure you will be able to afford to repay this
amount, and make sure you will not be short of money the following month, or
you are liable to end up in a cycle of troubling financial difficulties. Lack
of money on a regular basis is a situation which can quickly become difficult
to manage, and even more stressful than the financial emergency you had in the
first place.
Be very cautious of
any lender that tries to sell you a short term loan, or any form of credit. If
this happens to you, you can report the company to the OFT, as they could be
breaking regulations and codes of conduct.
A lender is entitled
to contact you about the repayment of a loan you took out with them, but they
are not allowed to harass you by making contact on more than three occasions in
one week, and certainly not during unsociable hours, or at unreasonable times
of the day or night.
Good lenders will
always be respectful, communicate only when necessary, and will give you all
the information you require, before you agree to finalise your loan
application. They will send you an email confirmation, and you will only get
calls if necessary, during business hours, on a Monday to Friday.
If you take out a
payday loan and think you are going to find it difficult to make the
repayments, it is best to get in touch with your lender immediately to discuss
your options with them. Whatever you do, try not to avoid the issue as this can
make the situation worse and increase your debt. If you are late with a
repayment you will incur further charges.
By thinking carefully
about your options, and calculating what you can afford to repay, you are more
likely to get the best from a payday loan, as a fast and easy form of credit
that you can use at any time.
Also think carefully
about choosing the right lender, one which has an excellent reputation, and
which always provides the information clearly and openly. By doing this, if you
need emergency money, you will be able to get it, you will have a trusted
lender to work with, and you will be able to borrow and repay your loan with no
additional stress or problems.
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