Quick payday loans are very efficient when you are short of cash. You pay them in installments over an agreed amount of time. These types of loans are easy to access with many lenders commanding an online. However, you should avoid them unless you are confident that you can pay them in full over the agreed period. Additionally, you need to know a few things about these loans before you get them.
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What are Payday Loans?
Payday loans are quick loans that help you get to survive harsh situations until you get your salary. The lender will deposit the full amount in your bank account. You should pay it in full plus interest after an agreed time. Some lenders will allow you to pay for extended periods such as three months. Whichever method you choose, these loans are often in small amounts and are short-term. They are also expensive if you do not pay them in time and can make your situation worse.
Quick Payday Loans Regulations
The Financial Conduct Authority (FCA) regulates these types of loans. These regulations limit the amount of interest the lenders can charge you as well as the default fees. For example, if you take a quick loan intending to pay in 30 days, you should pay fees that do not exceed £24 for every £100 you borrow. In case you are late in paying the lender, then he cannot charge you more than £15 on top of the borrowed amount plus the interest. This law ensures that you can never pay more than double your initial loan.
FCA cap helped immediate problems with payday loans, and appears to have had limited ‘waterbed’ negative impact: https://t.co/OxFe4IR8K5
— Jamie Thunder (@jdthndr) 20 September 2017
Understanding how the Continuous Payment Authority Works
Some lenders will ask you to let them use your debit card to take the money directly from your bank account when the agreed date arrives. This method, known as CPA, comes in handy when your salary is late but it can also be risky if you have little or no money to take of your bills. However, the lender is limited to getting money from your account using CPA only twice. You have the freedom to ask for other forms of payment if you are not comfortable with CPA.
How to Get your Payday Loan Approved Fast
Payday loans are quick loans. Applications and approvals for such loans can take place online. That means you can apply for the loan and the lender can approve it right from the comfort of your house. You can increase your chances of getting these loans by doing the following things.Payday loans are quick loans. Applications and approvals can take place online. Click To Tweet
- Providing honest information– payday loan lenders ask similar questions, and they may rely on a third party to confirm your information. Ensure that you fill online forms truthfully to avoid disqualification for a possible loan.
- Ensure you apply for an amount you are comfortable paying– asking for an amount whose repayment you cannot afford is tempting. Doing so will lead you to an unending debt spiral. It is, therefore, vital that you take careful consideration to ensure you take a loan you can pay comfortably.
- Choose prudent monthly installments – also ensure that you choose monthly payments that you can comfortably bear. Additionally, avoid too many monthly repayments so that you do not spend too much time repaying the borrowed sum.
Don’t forget once you have the loan, it will be a time you have to pay back. This article may help you.
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