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What Will Happen If I Miss A Loan Payment?

    • 1 posts
    February 5, 2018 4:48 AM PST

    Each of our lenders will have a different policy when it comes to repayments, but there are a few general things that you could probably expect from a loans company.

    Everything should go smooth sailing, and you will only normally only have to pay extra fees if you do not stick to your loans agreement. If you are unable to pay, the first thing that you may be offered, is the opportunity to roll over your loan into the next month. While this is a service that is available, we would always advise you to avoid this if possible and to only use it if necessary. A payday loan is only suitable for the short term, so if you know that you will need the cash for longer than one month, then it might be worth looking for another form of borrowing.

    If you know that you will have difficulty making your payments, then your best bet is to ensure that you get in contact with your payday lender as soon as possible. It does all depend on individual loan providers, but they should hopefully be able to arrange an alternative payment plan for your situations.

    If you don’t get in contact with your loan provider, and they can’t take the loan out of your bank, then you may end up paying a larger fee. If you continue to not pay your repayments, then it could end up that your loan is referred to an external collections agency. This is definitely something that all parties will want to avoid.

    If you don’t make your payments then it could affect your ability to use the same payday loans company again and it will affect your financial future. So, if you think that you will not be able to make the loan repayments, then it’s probably a good idea to find another form of credit.

    Will A Payday Loan Lender Contact My Employer?

    Generally, payday loan lenders will not contact your employer. They will understand the private nature of applying for loans, so will always take that into account. Having said that, the companies will need to ensure that you will be able to pay them back.

    Each of the lenders that we work with has their own processes to verify employment, so it does entirely depend on who you go with.  Normally, instead of contacting your employer, they will ask you for proof that you are employed – pay slipetc. so they can see that you are getting money in.

    The only situation really where you could find that a lender will contact your employer, is if you fail to repay your loan. If you do not pay your loan back and do not contact the lender to explain, or to try and arrange alternative payment, then it is likely that they will try to contact you by the details that you provided on your application. This could include the details of your employer.

    This is an option that I’m sure everyone would like to avoid, so it’s much easier just to ensure that you repay your loan as soon as possible.

    If you are unsure about anything and want to check, then your best bet is simply to contact the company before taking out your loan. You could also check out the company policies online if they are available. If not, so long as you can provide sufficient proof of employment, and that you repay your loan on time, there should be no reason for your lender to contact your employer.

    Families Turn To Payday Loans Over Bank Holidays

    Since the start of May, the demand for payday loans has shot up by 58%. These types of loans have become increasingly popular as the continuously rising cost of living has started to put intense pressure on people’s financial circumstances.

    Payday loans are small sums of cash to help ease financial difficulties, especially with those needing a bit of extra money before their payday. The amounts offered are generally between £50 and £1,200, but the average loan is around £250. The majority of loans can be offered on the same day that you apply, with many lenders able to provide loans within the hour. Because of this, it means that these loans are designed for people who need fast help with unexpected emergency finances.

    A popular online broker has said that in the early months of this year they have seen payday loans demand rise by a whopping 400%. They also reported seeing the figure get even larger over the double bank holidays that we have had recently, which seems to have greatly impacted our finances.

    For some people that may have part time jobs or are self-employed, the bank holidays may have meant that they had a day off without pay.

    The site has also said that many households are struggling with the rising cost of living, having seen their weekly expenditure rise by over £50 in the past six months.

    So, while the large amount of bank holidays that we have had recently may have been welcomed with open arms by many of us, others battled with the extra costs that came with an extra day out.

    See more here...

    This post was edited by Jonathan Nolan at February 21, 2018 9:16 AM PST