A payday loan is a relatively new type of financing that has become increasingly popular. People who do not have enough money to cover their expenses each month use this short-term financing to cover the gap.
Unexpected expenses and low income are two reasons for using payday loans. Unfortunately, this debt can become unmanageable if it is not repaid during the initial term. The representative APR for a payday loan can be quite high, turning a short-term financial solution into long-term debt.
We can offer you debt assistance and consolidation solutions for payday loans. Are you in a payday cycle? Are you juggling your payday loans and leaving yourself short each month? We can assist you with a consolidation solution. Contact us today to find out more.
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Payday Loans Designed for Poor Credit
It has become very difficult for many people to obtain credit, making a no credit check payday loan seem like a good solution to short-term cash needs. This may be true if the loan is repaid in full as agreed. However, the debt generated by this loan can become a huge issue if the funds are not quickly repaid. A payday loan is a short-term solution and as such, should only be used for short-term financial issues.
The loan is designed to be repaid with interest by the next payday. As an example, a £200 payday loan with a 14-day term may feature an interest charge of £20. This fee does not seem outrageous, considering the convenience the loan provides. However, viewed as a representative APR, it is quite high compared to conventional loans and other types of credit. The APR for a typical credit card is about 20 percent, while it is not unusual to see a payday loan APR exceeding 1,000 percent.
The Payday Loan Cycle
Lack of finances is a common reason that borrowers cannot repay their payday loans. If a person does not have access to other forms of credit, taking out another payday loan may be the only way to repay the first one. If there are several loans outstanding at the same time, the borrower may attempt to consolidate these.
The individual takes out a large payday loan to repay those already outstanding. This can provide short-term relief but if the financial situation does not improve, the individual may not be able to repay the large loan. This can result in an extremely high-interest charge.
We Help People in Payday Loan Debt
If payday loan debt has spiralled out of control, we can help. Our debt management professionals will evaluate your expenses and income and propose changes to your personal budget. We can help you reduce your expenses while making the most of every dollar you earn.
If you decide to participate in a debt management plan, we will contact your unsecured creditors, negotiating affordable reduced monthly repayments on your behalf and asking them to freeze your interest charges. Though creditors are not obligated to comply, we are skilled at dealing with them, which increases the likelihood of a favourable outcome.
Benefits of Our Payday Loan Assistance
Letting us help you deal with payday loan-related debt and consolidation benefits you. We offer free, objective advice and solutions regarding your debt. If you choose to establish a debt management plan, we save you the time and frustration of dealing with these lenders.
We clearly explain your options, get to work as soon as you determine which debt solution is best, and help reduce your debt repayments.