Hardly anyone returns empty-handed after contacting a payday lender. The process is easy, the rules are well-known, and the transfer is quick. Then why do people hesitate to approach a payday lender when they most need to? It is because they are fearful of the payment procedure. The repayment of the payday loan is one big misunderstood phenomenon. The rules are as simple as one can imagine. If someone has a steady job, and can easily pay-repay the payday loan by the time they receive their next pay check, they can easily apply and be done with the whole procedure within days, a month at most.
The course of action might get a little tricky, if the person cannot pay the loan by the time their payments period rolls around. It can certainly get a little complicated but not difficult enough to throw the borrower into a financial crisis. There are official rules that prevent anyone from getting deeper into a debt trap.
Here are some of the easiest and legal ways to deflect a bad debt situation from happening. The moment you realise that you do not have a source of paying back, do the following:
- Never ignore the situation or disregard the lender. Avoid getting panicked or flustered.
- Instead of getting agitated over the situation, contact your lender as soon as possible to communicate the matter promptly and The lenders too are bound by some legality and will not treat the borrowers unjustly.
- Next, contact the bank and ask them to stop the recurring payment from going to the lender, because there’s a high chance you might not be able to pay for the basic necessities, if the payments keep on going to the lender.
- Avoid rolling over your loans at all cost, until you have a sure-fire way of knowing that payment can be made next month.
And if at any point the lender refuses to cooperate, then the borrower can file a complaint against them to the Financial Ombudsman Service. That being said, one must try their best to pay off their debt, even if they have an unsteady source of income, it is not even that much of a complicated task. Here’s how it can be done:
• One Loan Problems Cannot Be Solved With Another:
One of the most common–yet an painful way–of handling a bad loan situation is via getting more loans. This is just adding more to the debt mountain. We know that you are panicked and possibly stressed-out, but paying one loan with another is not the solution to your problems, which brings us to our second solution.
• Never Stress Out:
People usually make very bad decisions when they are stressed out. Scratch that option out of your to-do list. Only a calm and collected person can make right decisions.
• Go to Friends:
Going to your best mate, your brother or any close person is a lot better than going to another lender. A friend, who is patient and understanding, will help you with the loan without a second thought and without a scrap of interest. They won’t even dangle a stopwatch on your head for repayment. Just make sure to pay them back at the first opportunity you get.
• Curtail Expenses
Until you have paid each and every fifty pence piece back, cut back on your indulgent spending. The trimming of expenses will only be for a short period of time, and it will help you with saving and paying off your debt in far lesser time than anticipated. You can curtail your expenses by saving on petrol and catching the town bus daily, or spending less on drinks every day after work. The list can go on, all you need to do is evaluate your spending, and see where you can afford to save.
• Piggy Bank:
Now that you are saving, better start putting this saving in a piggy bank, so that by the time the paying period gets around you’ll be able to pay the lenders easily, even if your pay is not sufficient to repay the loan.
• Find Another Job:
Doing two jobs is not easy to do, but it will definitely make it easier to pay off your loans. If one job is not enough to pay off your payday loan with interests then get two jobs. To save your energy, assign different days for each one so that you don’t get exhausted. As soon as you have paid off your loan completely, you are free to leave the job. However finding another job is one of the smartest and quickest ways to get rid of the job, in just one month; with one pay check, you’ll be able to part ways with your payday loans.
The helpful part about payday loan is the small amount it usually involves. Since the payday loan is only for a short period of time, and the interest rates are relatively high, people only borrow a small amount. If you follow the above-given advice carefully, you can do away with the whole ordeal within weeks or months at most. All this becomes indefinitely easier when the lenders are cooperative and reputable, granted that these kinds are difficult to find but with Quiddicompare the borrowers can easily reach out to lenders of high standing in the market.