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What You Need to Know About Payday Loans and Their New Restrictions

Thursday, November 30, 2017 22:19
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What You Need to Know About Payday Loans and Their New Restrictions

It is no big secret that the economy is not doing too well these days. Of course, the housing market is coming back in and more jobs are being created, but this simply doesn’t make up for the past several years. Over the past several years the job market wasn’t in the best of shape, leaving many individuals living from paycheck to paycheck. When an emergency came up, most people had to turn to alternative sources of income like payday loans. If you are one of these individuals, you might be surprised to learn that there are shocking new restrictions being placed on this type of lending which could affect you and your family drastically. Below, you will learn more about payday loans and these new restrictions.

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Understanding the Concept of a Payday Loan

If you are not familiar with payday loans, they are an incredibly effective form of borrowing money in a hurry. For instance, these are usually short-term loans which are issued to individuals in the amount of 300 pounds. These loans are usually repaid in a single payment when the borrower receives his or her next paycheck or social security check. Most of the time, the repayment is due within two to four weeks after the loan is issued, and the borrower has to write a check ahead of time for the amount that he or she is borrowing. There usually is a fee for every 50 pounds that is borrowed. Some areas charge 10 pounds for every 100 pounds, while other areas charge 30 pounds for every 100 pounds.

Research Is Needed

Before attempting to hook up with a payday lender in the United Kingdom, it is pertinent to do a little bit of research. There are many illegal money lenders throughout the country. They have begun positioning themselves outside of casinos, post offices and food banks. This information comes from the Financial Conduct Authority. Some payday lenders in the UK are worried that the shady behavior from these illegal entities could soon lead to a crackdown on payday lenders in the United Kingdom. With that being said, it is absolutely pertinent for consumers to proceed with caution. It is vital for residents to do their research before taking money from an illegal lender outside of the office.

They should do everything possible to ensure that the lender is credible and respectable. Performing research online before getting involved in a contract is recommended. This will allow the consumer to get the money they need without any unnecessary risks.

Available to Individuals With Bad Credit

One of the biggest benefits of this type of lending is that it is readily available to individuals with less than perfect credit. In today’s economy, many middle-class individuals have a poor or less than stellar credit rating, which prohibits them from getting loans through a traditional banking service. So, what are you supposed to do if you have bad credit and need some cash in a hurry, but don’t have anywhere to turn? For many individuals, payday loans are the only solution. Applying and qualifying for these types of loans is extremely quick and easy. In fact, the only thing that can disqualify you is if you have defaulted on a payday loan in the past. Remember that there are bad credit payday loans available to consumers in this day and age.

Unconventional Hours Provides Convenience

As a working-class individual, it is highly likely that you are always strapped for time. In fact, you probably don’t even have time to make your kids dinner at night. With that being said, you probably already know that banks are only open during certain hours of the day, and these are usually the times when you are at work. Taking time off work, going into a bank and applying for a loan can be extremely difficult. However, when you are dealing with payday lenders, this is something that you don’t have to worry about. These lenders are readily available at unconventional hours, so you can simply stop by their place of business after work, whereas the banks would probably be closed. This is another aspect of the business that has made the industry so popular over the past several years.

 

 

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