Payday loans are small, short-term loans that were traditionally used between paychecks. Money is deposited into your bank account and must be repaid in full, plus interest and fees, at the end of the billing cycle. However, extended loan terms of three months or more are becoming increasingly common, with longer loans now being made accessible. These loans share the characteristics of being expensive, having a short repayment period, and being for relatively low amounts.
If you can’t afford to repay a payday loan by its due date, it will only add to your financial woes. You should give it some serious consideration before settling on one.
The True Expense of Payday Loans
According to regulations issued by the Financial Conduct Authority, the maximum amount that can be charged for a payday loan is limited by law. As slickcashloan offers personal loans for bad credit in a minimal interest you can be rely on them easily.
Invoices That Must Be Paid Regularly
Many payday loan companies require you to agree to automatic payments before they will grant you a loan also known as a continuous payment authority. This will allow them to automatically deduct the amount due from your checking account using your debit card on the due date.
This has its uses but comes with some danger. It could leave you short on cash for more pressing expenses like mortgage or rent, much alone necessities like food and heat. This may cause you to go over your overdraft limit and incur fees from your bank. Ask the lender if there are anything else you can do to help if you don’t think hiring a CPA will offer you adequate control over your finances. A CPA can be terminated at any time, but the obligation will still need to be repaid.
Variable Repayment Plans
Know your alternatives and how they function before committing to a payday loan’s automatic payments.
Withdrawals made directly from your account
You authorize a third party to withdraw funds from your bank account by signing a Direct Debit Instruction. If there is a mistake in the payment, you are protected by the Direct Debit Guarantee Scheme. The amount of a Direct Debit payment varies according on the total amount that is payable.
Order maintained
By signing a paper indicating the amounts and due dates for payments, you authorize your bank or building society to make periodic payments on your behalf. Standing orders, in contrast to Direct Debits, are always the same amount.
Find an Option That Works Better
Even if you have a low credit score, you shouldn’t automatically rule out the possibility of securing a better loan offer elsewhere.
Don’t let the ads influence you
Almost every financial emergency can be solved with a loan from a payday lender. However, you shouldn’t get a payday loan if any of the following apply:
- You plan on using this money to settle some of your other debts.
- You’ve taken out at least one payday loan before.
- You have doubts about your ability to make timely payments on this loan.
For entertainment purposes such as going out more often, buying fancier clothes, or attending more expensive concerts, among other things. Are you having trouble paying your payments, including loans and credit cards? Then, consult a debt counseling service for free, impartial guidance. The advisor can help you bargain with creditors and get your finances back on track. The extra time you’ll have to pay off your debts means you won’t have to take out any more loans.
