Payday loans are beneficial for people with low credit score. Unlike conventional loans that have stringent eligibility criteria, payday loans have only few requirements and are easily available. The borrower receives the cash within hours of being assigned to a money lender. However, this advantage comes with a risk. The interest rates of payday loans are high.
Despite the high interest rate, many borrowers find this payday loans an attractive option due to instant access to money. They find it hugely beneficial to cover emergency financial situations. Are you seeking payday loans to help you sail through a difficult financial situation? There are a number of money lenders online who promise same-day cash.
Applying for payday loans in UK:
If you are looking for a secure money lender in the UK visit Loanpig. LoanPig is a leading money lender offering payday loans at fair interest rates. Their maximum interest rate is 0.8% per day. Submit your loan application and wait for loan confirmation. If they aren’t able to meet your loan requirements, they connect you with other direct lenders.
How things could possibly go wrong with payday loans?
There are borrowers who fail to evaluate the risks before taking payday loans. The short repayment period coupled with high interest rates makes it hard for some to settle the loan within the prefixed duration This pushes them into a state of further financial distress since the amount due keeps multiplying drastically with late payments. They try to sort it out by:
- Purchasing another payday loan to pay off the previous loan
- Opt for loan extension.
However, are these effective ways to deal with overdue payday loans? No! When you take another payday loan the cycle doesn’t end there. It keeps continuing and the borrower gets caught up in more debts. Payday loan extensions isn’t an ideal option wither. If you miss payments it reflects badly in your credit score and reduces of possibility of lenders offering you loans in future.
How to proceed if you have difficulty settling your payday loan?
If your financial situation makes it impossible for you to settle your payday loan, bring it to the attention of your lender rather than delaying payments and making things worse financially. Your lender may:
- Freeze the interest to make it easier for you
- Spread the repayment for a longer duration. This way you can reduce the amount you are required to pay during each instalment.
How to make sure you pay your payday loan on time?
Payday loans aren’t all messy. With careful planning of your finances you can repay them on time. Before applying for payday loan come up with a budget sheet that includes all your monthly expenses and borrow only if you are sure you’ll be able to repay the amount on due date. Build up emergency funds as a backup plan to help you during financial emergencies.
Choose the online lender carefully after comparing their interest rates. Opt for someone who has good reputation and reviews.