Yes, you will no option left in that case! No option other than the payday loan facility.
With no material restrictions on the amount you can borrow, payday loans allow for added flexibility as well. If you can not make a payment within a month, all what you got to do is inform the lender and you can roll off your loan to the next month. No tension, just a small amount of fee and off you go!
So, what’s the case for those with a relatively poor credit history?
Bad Credit History
Well, nothing really damages your chances to secure a loan more than virtually a bad credit history. If you know someone who keeps on delaying his repayments, he’ll end piling up a poor score on credit ratings.
In the United Kingdom alone, it gets really hard to secure any particular type of loan if you’re carrying a bad credit history against your record. Filing for bankruptcy doesn’t help in that case.
However, there’s something unique about payday loans you might not know. Payday loans are not only as easy alternate to finance your short-term financing needs, but also individuals with a poor credit score can also access payday loans.
Ease of Processing
Typically payday loan requests are reviewed and verified within a day. The amount is then transferred via online systems by the end of the day. That means payday loan transactions are all managed and accessed easily just sitting at home!
However, with such ease and benefits you got to be careful about your payday loan repayment structure.
What is it about your repaying your loans that makes it sweat taking?
Repaying your Loans
Interest rates! Bear in mind that interest rates are higher and if you delay repaying your loan, interest fees keep filing up.
The due date for repayments is usually decided before the loan itself. It basically depends on the pay-date structure in almost all cases. But you can also choose some alternative terms of the agreement with your lender if he/she agrees.
The lender usually informs the person borrowing a few days before the repayment is due. This is done just to avoid any unnecessary delays or confusions regarding the repayment.
Normally, a period of thirty days are allowed by the lender for the repayment. Some cases however allow it to be extended to two months.
The extension is however, not a straightforward thing. It is only granted in instances where the borrower is facing some kind of emergency that leaves him unable to make the repayment. However, the borrower must inform the lender of his situation as soon as possible to avoid any feelings of resentment or avoiding any further complications.
The second major concern is that if your account does not have sufficient funds to make the repayment, the bank charges a fine making the borrower pay extra when he tries to make a repayment.
In an extreme case where you are unable to make the repayment, please read below to ensure that you take the right step.
What you should do if you Fail to Repay
If you are faced with an emergency and lack the funds to repay your lender, here are some steps right from the experts you should follow.
Speak to your Lender NOW
Instead of avoiding the whole subject altogether, it’s the right time to talk to your lender straightaway! Do not let the situation linger until it gets completely out of hand. You can ask for a bargain and possibly ensure one by talking to them calmly and explaining your circumstances.
Also, take care to read about the laws pertaining to this matter. It is always good to be over-informed rather than under.
Here are some laws you should know in advance:
- Lenders cannot by law harass with you in person, over the phone or with constant emails.
- They are obliged by law to give you ample time and treat you fairly in order to facilitate repayment.
- In case of a dispute, the extra interest and fee should be frozen.
- The lender must allow the borrow to make a part-payment at the very moment if he/she is unable to make the payment in full.
Top tip: Keep a written copy of the agreement and a record of all your conversations be it on the phone or via email as a proof that you attempted at contacting the lender.
Whenever you realise that you can fully repay your loan, give your bank a call and advise them to cancel the payment schedule. This will stop the lender from accessing your bank account funds. This is a necessary step as not having money in your account for basic life necessities is a bigger problem once the lender takes all the balance.
Take care to inform the lender before taking this precautionary step.
Never Allow Rolling Over
If you are in financial distraught, it is advisable not to roll over. What it does is, it add an extra interest charge to the owing balance. It is better to contact a debt free adviser rather than availing this option.
It’s compulsory for your lender to recommend you with a reputable debt adviser.