What if I can’t pay off my payday loan? Can I get help with debt?
If you miss payments for any type of loan, there are consequences, and payday loans are no exception. These consequences can vary from lender to lender and loan to loan. For example, some will charge you a late repayment fee while others will increase the interest rate on your loan. It is very important that you are clear about the possible penalties of a payday loan you will have imposed for missed or late payments agreeing to any loan.
Remember always check that you are happy with the payday loan offer before signing. The Citizens Advice Bureau are very clear on how to handle payday loans:
Don’t get caught out, be fully aware of your situation and always remember there is free help and advice if you get into debt difficulty:
Most reputable payday loan lenders will have this laid out for you, as well as the payment plan and any initial fees, in a clear and easy to understand way so you can go over the numbers before you make a decision.
To make sure that you are dealing with the best direct lenders out there, it is my honest advice that you enlist the help of a payday loans broker. These brokers will only require you to apply with them once. Then they will act on your behalf and contact multiple lenders, looking for the best loan conditions for you. They will then present you with the offers. You can choose whichever you feel is the right one for your current situation.
As we mentioned above, missing payments or being late with them, will affect you credit score in a negative way. Please be sure that you are able to pay back the loan in the agreed fashion or you could find yourself getting into further financial trouble.
Payday loans can be a great way to solve a short term cash flow problem and even be a start towards mending your credit score. However, if you go into them without proper consideration, they can turn into just another headache.