The cost of living is rising year on year and with no positive signs of reprieve on the horizon millions of people are struggling to pay their monthly bills making payday loans a necessary safety net in the turbulent economic climate. In a recent OFT (Office of Fair Trading) enquiry it was estimated that Â£900m was borrowed in the form of payday loans, and Consumer Focus estimated that over 1 million people took out over 4.1 million loans back in 2009.
These figures have increased dramatically to a staggering Â£1.8bn as the pressure on the economy mounts and people face rising costs, while wages remain stagnated. Payday loans are a natural reaction to these diverse conditions as necessity is the mother of invention and the reality is that millions of us are simply unable to pay the monthly bills from time to time. So if you are considering taking out a payday loan then you are definitely not alone and should not feel that you have somehow failed. It would be wise to make sure that you approach a well established company with all the right credentials such as Gimmedosh.com who have a consumer credit licence and will give you clear advice. In this way you will be in safe hands and will be well aware of when the repayment is due, and how much you will have to pay, giving you time to work out a plan to pay on time so as to keep the repayment as low as possible and avoid extra charges.
To Borrow or not to Borrow
If for example you are faced with a surprise utility bill that you just cant manage to pay, and the possibility of being cut off looms, what can you do if your current lender has refused to help you out? Late payments as we know ruin credit ratings and lead to a spiralling negative cycle of debt problems as penalty charges mount up; so whatever your opinion of payday loans they are in fact a result of the recent economic crash and are a necessary service that can really help you out of a tight corner. If used wisely payday loans will prevent you getting deeper into financial trouble when other lenders have turned their back.
You may be wondering about the interest rates associated with payday loans and feel that you might be getting yourself into deeper financial trouble by taking one out. So it is best to be well informed and understand the contract as fully as possible. If the loan is paid back on time, then in most cases the interest charges although higher than your average bank loan will cost much less than the penalties incurred by failing to pay outstanding bills and your credit rating will remain unaffected. However it could be said that if you are needing to consider a payday loan then it would be a good time to take a look at how you are organising your finances and see how to start lessening your outgoings, and start planning for those rainy days.
94% of Payday loan Customers are Totally Happy
A very high percentage of payday loan customers have reported that they are very happy with the arrangement and an even higher percentage said the contract of service was completely transparent and they would recommend the service to a friend. Payday loans are relatively easily to get and the money could be in your account within hours of the application form being sent in. Taking out a payday loan is a great solution for most people experiencing financial problems but it should be thought of as a last resort, and if you do take one out try not to let the loan roll over from one month to the next. If you are experiencing growing debt problems then take time to seek some free advice from a debt counselling service.