Payday loans have been getting some bad press again recently, with the recent OFT Compliance Review finding that many payday loan lenders need to review their policies and procedures in order to meet compliance requirements and giving them 12 weeks to prove they have improved their practices where the OFT has identified failings.
As the end of the summer holidays approach and the new school year is about to start, finances can sometimes be stretched with additional demands on them and it can be difficult to make ends meet. Nobody should take on debt if they donâ€™t need to. However, there is no reason to struggle if you donâ€™t have to, equally consumers should think carefully about how best to organise requirements over this period.
If you are thinking that a short term loan may be right for you to ease cash flows at this time, a payday loan could be a solution to consider, if you are confident that you can repay on your next payday. Payday loans work best when used for the short term only, and they arenâ€™t suitable if you have existing financial difficulties. Responsible lenders would not want to be accused of encouraging unnecessary borrowing, either, or promoting easy access to credit, but sometimes everyone needs a little assistance.
Responsible payday loan lenders carry out a number of checks on applications including on affordability so it helps if you can make sure the information you put down on the application form is accurate.
You do need to make sure that when it comes to repayment of your payday loan you have sufficient funds in the account for the Project PaydayÂ that you gave details of on your application. When you sign up to a loan, you also commit to repay. However, lenders know that sometimes circumstances can unexpectedly change and have different ways of helping you get in touch, such as by phone, email or letter, or a customer log-in area It is really important to let the lender know if you think you may not be able to repay on the due date.
If you donâ€™t pay and you donâ€™t let the lender know, you may incur additional charges, and you should look out for these potential costs being clearly set out in the information provided to you before you sign your loan agreement, so there should be no surprises.
So, if the new school year is creating unnecessary pressures on finances a short term loan may be a potential solution providing you have the necessary disposable income to be able to settle your loan when it falls due. This way, you wonâ€™t build up long term debt and will minimise the costs of the loan.
Bio: Sophie regularly visits Uncle Buck to search for the best loan advice and deals, many companies charge a lot of interest so it is best to shop around, uncle buck has a database full of lenders where you can see who supplies the best deal.