The Top 7 Things You Should Know:
1. Get an advance on your wage.
2. Access cash within hours of applying.
3. Use for a special occasion or for emergencies.
4. Avoid falling behind on payments.
5. Be prepared for high interest rates.
6. Know your rights when talking to providers.
7. Make sure not to pay for Payment Protection Insurance you don't want.
Payday loans explained:
Payday loans are short-term loans that are approved on the basis of expected, future income. In basic terms, they offer people a way of accessing money in advance of receiving a paycheck or salary income. Often all that is required is proof of income, such as a paycheck, in order to be considered.
Reasons for getting a payday loan
Payday loans are a popular and effective means of getting money quickly and legitimately, often with a low credit rating. A payday loan will rarely exceed a few hundred pounds, and consumers use them to pay for a wide range of things, from an overdue gas bill to a present for a loved one, or even to contribute towards a holiday. Electronic items, such as an iPad or computer games console, can prove popular, while many people may think its lucrative to take out a payday loan after Christmas, to take advantage of the Boxing Day and January sales.
Comparing different providers:
There are lots of different payday loans providers, which can often make it difficult deciding what payday loan to use. Most focus on the speed and ease with which borrowers can access funds, with some such as Wonga stating on their home page just how quickly consumers can get their hands on a loan. Other providers place lots of emphasis on customer loyalty, enabling borrowers to access progressively more funds based on their previous record of timely payments and number of successful loan applications. US4 Pay Day Loans places emphasis on its simple three-step application process, boasting that approval is given within 60 seconds.
Payday loan interest rates:
Payday loans cater for a very niche group of people, usually with low incomes and without many assets. As such, these loans are considered high-risk to the lender and often carry a high interest rate. A 1,000 per cent or more APR is not unusual, so one of the most important elements of choosing a provider is to compare rates, to ensure you get the best deal. However, there are obvious advantages to being loyal to the same provider, who will often reduce interest rates and offer bigger loans to those who have borrowed from them in the past.
Payday loans complaints and disputes:
Falling behind on payday loans payments can very easily see consumers engulfed by debt. Payday loans providers are obligated under UK law to seek an amicable resolution with borrowers that are struggling to meet their debt obligations. The Financial Ombudsman noted earlier this year that complaints about payday loans are relatively low, but there has been a significant increase in the last year, probably as a result of job losses and more people struggling with repayments in the financial crisis. One of the most important things when disputing with payday loans companies is to know your rights. Most companies have clear information about the complaints procedure, including details of the bodies to contact for support and advice, including the Financial Ombudsman service.
Other Payday Sources:
http://drebman.com/groups/test1/wiki/53229/12_Month_Payday_Loans_same_amount_longer_payback.html
http://dplpool.com/groups/labelsprintingcards/weblog/6ccc8/Cash_Loans_For_Unemployed_Money_In_Your_Pocket.html
1. Get an advance on your wage.
2. Access cash within hours of applying.
3. Use for a special occasion or for emergencies.
4. Avoid falling behind on payments.
5. Be prepared for high interest rates.
6. Know your rights when talking to providers.
7. Make sure not to pay for Payment Protection Insurance you don't want.
Payday loans explained:
Payday loans are short-term loans that are approved on the basis of expected, future income. In basic terms, they offer people a way of accessing money in advance of receiving a paycheck or salary income. Often all that is required is proof of income, such as a paycheck, in order to be considered.
Reasons for getting a payday loan
Payday loans are a popular and effective means of getting money quickly and legitimately, often with a low credit rating. A payday loan will rarely exceed a few hundred pounds, and consumers use them to pay for a wide range of things, from an overdue gas bill to a present for a loved one, or even to contribute towards a holiday. Electronic items, such as an iPad or computer games console, can prove popular, while many people may think its lucrative to take out a payday loan after Christmas, to take advantage of the Boxing Day and January sales.
Comparing different providers:
There are lots of different payday loans providers, which can often make it difficult deciding what payday loan to use. Most focus on the speed and ease with which borrowers can access funds, with some such as Wonga stating on their home page just how quickly consumers can get their hands on a loan. Other providers place lots of emphasis on customer loyalty, enabling borrowers to access progressively more funds based on their previous record of timely payments and number of successful loan applications. US4 Pay Day Loans places emphasis on its simple three-step application process, boasting that approval is given within 60 seconds.
Payday loan interest rates:
Payday loans cater for a very niche group of people, usually with low incomes and without many assets. As such, these loans are considered high-risk to the lender and often carry a high interest rate. A 1,000 per cent or more APR is not unusual, so one of the most important elements of choosing a provider is to compare rates, to ensure you get the best deal. However, there are obvious advantages to being loyal to the same provider, who will often reduce interest rates and offer bigger loans to those who have borrowed from them in the past.
Payday loans complaints and disputes:
Falling behind on payday loans payments can very easily see consumers engulfed by debt. Payday loans providers are obligated under UK law to seek an amicable resolution with borrowers that are struggling to meet their debt obligations. The Financial Ombudsman noted earlier this year that complaints about payday loans are relatively low, but there has been a significant increase in the last year, probably as a result of job losses and more people struggling with repayments in the financial crisis. One of the most important things when disputing with payday loans companies is to know your rights. Most companies have clear information about the complaints procedure, including details of the bodies to contact for support and advice, including the Financial Ombudsman service.
Other Payday Sources:
http://drebman.com/groups/test1/wiki/53229/12_Month_Payday_Loans_same_amount_longer_payback.html
http://dplpool.com/groups/labelsprintingcards/weblog/6ccc8/Cash_Loans_For_Unemployed_Money_In_Your_Pocket.html
