Tips for Paying Payday Loans on Time

Truth be told, there is still a lot of working-class in the UK that are not aware of the consequences involving unpaid payday loans. At first, they take advantage of easy access to cash then forget the responsibility that follows. This gap happens most of the time because of misinformation and lack of education about the subject matter.

Running low in cash happens to everyone, and it’s understandable that you would need other means to assist your dire need to pay for bills and other expenses. That explains the increasing rate of employees getting a payday loan in times of crisis.

But before doing so, you need to learn how to pay your debt in time and not get in trouble with lenders. Here are some tips that will help you to pay off your loans on time:

  • Agree to settle your payments via Continuous Payment Authority (CPA).

This might be concerning for some, but if you apply to a credible lender, they won’t just take your money without your consent. You should have your payment under CPA so you won’t have to take the trip to the bank and pay it yourself. Since it’s automatically deducted from your account, you will no longer have to deal with forgetting to pay and incurring penalties for missing the due date. You can always check your bank account to confirm if the lender has deducted the amount as per the agreement.

  • Leave enough balance in your bank account.

As a borrower, you are responsible for keeping your account in check as well as your debts. It’s important that you set aside an amount for payment so the bank won’t charge you extra fees just to incur a deficiency. It will help if you set a reminder in your phone to never withdraw all your money from your account. This way, you can avoid the hefty charges from the bank.

  • Understand the loan contract before signing.

As a borrower, you have your rights, and it’s just fair to exercise them. If there are things that you don’t understand from their terms, don’t hesitate to ask a question. Make sure there are no hidden charges that were not revealed to you during the discussion. You don’t want to be surprised in the end that you are paying more from what was agreed. This is one of the common mistakes that most borrowers commit. Not reading the contract well can put you in a bad situation.

  • Don’t get multiple loans that you don’t need.

Some borrowers would apply to different lenders all at the same time, thinking that they’re getting more. However, it’s the opposite. The larger amount you are borrowing, the larger amount that you are going to pay as well. Imagine dealing with different interest rates from those lenders. Your income will greatly suffer once the payment date arrives. Just because it’s easy to get payday loans, don’t get tempted to abuse and put yourself in a bigger hole of debt.

Key takeaway

There’s nothing wrong with taking out loans such as Payday Loans. It’s purely natural for us to be placed in tight financial situations at times. If you see the need to get a loan, go ahead and do your part to take on the application process.

But in return, be a responsible borrower. The moment you signed the contract, you have agreed to take the loan and pay all of it on the exact due date. Practice having a good credit status, so the next time a financial crisis comes up again, the lenders will be happy to have you back again. 

Author: Ruby

Ruby is a financial reporter and columnist based in Scotland. She has been featured multiple times in magazine covers sharing insights about household economics and credit management. She is also the author of half a dozen best-selling books on credit, wealth management, family business, and even a children's book that hones a child's interest and passion for entrepreneurship at an early age. Ruby continues to serve her readers with current trends and informative news in Finance and Business. Through the years, millions of people in the UK admired her work and contribution in educating individuals with personal finance.

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