Each payday or short term lender have their own ways of handling missed payments, but this post isn’t so much about missing a payment, it is about debunking the myth that all payday lenders are horrible loan sharks who love it when you can’t pay, it simply isn’t true. The amount of effort that a payday loan company has to go through to chase that money up is extra-ordinary, so they would much sooner you just paid on time.
Anyway, back to the point of missing a payment. Well, the first rule is, don’t. Don’t miss one. You shouldn’t need to. The reason being is that even if you are caught short that month and you will have trouble paying, if you are open and honest with your loan company, then chances are they’ll be nice to you. Seriously. Don’t believe me? Well it happened to a good friend of mine.
He took out a loan for 11 days to pay for a new exhaust on his car. It was over Christmas, and he just didn’t have the spare cash to do it. He needed the repair done so he could go and spend time with his family, a full 200 miles away. So he took out the loan, with the intention of paying it back in 11 days time. Now, life isn’t always smooth sailing, and low and behold, 3 days before his payment was due, he returned home to find one of his pipes has burst due to the freezing conditions.
So what was he to do? He could use the money he was going to use to pay back his loan on the pipe, but then he’d miss his loan payment. But he needed the pipe fixed immediately. It was a tough situation. So what he did, was (in my opinion) the most normal thing in the world; he called his loan company and explained the situation. What they did for him was to take payment on his loan and then issue him a new loan for 30 days immediately, so he didn’t miss a payment, and he could still get his pipe fixed.
Ah, “but what if it wasn’t an emergency and I didn’t have the money to pay back the first loan at all”, I hear you cry! Well, fear not, after doing some research, it turns out that if you speak to your loan company and explain the situation, then they’ll more than likely just extend your loan. If you are really in a pickle, then most of them will even offer you advice and help to get out of your debt problem. The last thing we want to see is people getting caught up in a lending cycle.
The thing you should take from this short article is this:
1. Never take out a loan unless you really need to. A night out with friends does not constitute an emergency.
2. Starting today, get a small ‘rainy day fund’ on the go – and then you can probably avoid loans altogether, even in emergencies.
3. Be HONEST with your loan company. This starts at the application process. Don’t hoodwink them or lie on your form, it’ll only come back to bite you. And if you can’t pay – keep the honesty going, chances are, they’ll try to help rather than the image that the media portrays of them being delighted when you can’t pay. It just isn’t true.
Also – If you are having trouble with your finances, you can contact the Step Change Debt Charity service at www.stepchange.org.
We hope this short article has help to debunk a rather large myth in the short term lending field, and if you do need a short term loan, then choose wisely. Make sure you read your terms and conditions. Don’t get caught out.
A handy article from the team at – http://www.short-term-payday-loans.co.uk