Thousands of people use payday loans as a quick and simple way to get the emergency cash they need. However, we often hear of many stories from people who have had bad experiences, because they did not take the time to be aware of their rights and responsibilities with this form of credit.

Not all lenders are reputable, and it can be difficult to tell by simply looking at a website. As a result, it is very important that anyone considering a payday loan takes the time to understand the terms and conditions, the interest rates and costs of a loan, and to make sure they understand their rights as a borrower, and their responsibilities if they decide to go ahead with the loan.

Most people know that payday loans are a fast and relatively easy way to access funds when they need them. However, it is always best not to rush into this form of credit, even in an emergency. There will be time for you to make sure you are dealing with a good lender who operates fair lending practices, and who is meeting the official standards for lenders.

Always check this and be sure you understand your loan requirements before you finalise your application or agree to borrow any money.

Your main responsibility is to make sure you can repay the full loan amount, plus interest and any associate fees, by the specified date. The repayment date is usually your next pay day, when you receive your wage. You must always do the necessary calculations to make sure you will be able to afford to repay this amount, and make sure you will not be short of money the following month, or you are liable to end up in a cycle of troubling financial difficulties. Lack of money on a regular basis is a situation which can quickly become difficult to manage, and even more stressful than the financial emergency you had in the first place.

Be very cautious of any lender that tries to sell you a short term loan, or any form of credit. If this happens to you, you can report the company to the OFT, as they could be breaking regulations and codes of conduct.

A lender is entitled to contact you about the repayment of a loan you took out with them, but they are not allowed to harass you by making contact on more than three occasions in one week, and certainly not during unsociable hours, or at unreasonable times of the day or night.

Good lenders will always be respectful, communicate only when necessary, and will give you all the information you require, before you agree to finalise your loan application. They will send you an email confirmation, and you will only get calls if necessary, during business hours, on a Monday to Friday.

If you take out a payday loan and think you are going to find it difficult to make the repayments, it is best to get in touch with your lender immediately to discuss your options with them. Whatever you do, try not to avoid the issue as this can make the situation worse and increase your debt. If you are late with a repayment you will incur further charges.

By thinking carefully about your options, and calculating what you can afford to repay, you are more likely to get the best from a payday loan, as a fast and easy form of credit that you can use at any time.

Also think carefully about choosing the right lender, one which has an excellent reputation, and which always provides the information clearly and openly. By doing this, if you need emergency money, you will be able to get it, you will have a trusted lender to work with, and you will be able to borrow and repay your loan with no additional stress or problems.



Source by JH Mitchell

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