You’ve just taken out a short-term loan through a payday loan lender. It lifts a great weight from your shoulders, as you now know you have the financial means to pay the repair guy and fix the white goods that have broken down at home. Payday is still a couple of weeks away, but this couldn’t wait. You’ve chosen to take out an instalment loan, a short-term loan where you’ll pay back the initial loan sum, as well as the agreed interest on top of that. It all seems easy to understand and you can afford to make those repayments over the coming three months.
Then disaster strikes. The first two payments were made on time after you have been paid from your job, but then you are made redundant, and it is an immediately fraught and stressful time. You don’t know how you are going to afford to pay the mortgage, the utility bills, or buy enough food for the family, and then you remember that there is still the matter of the final short-term loan payment.
In the past this would have potentially caused you long-term financial suffering, with high interest continuously applied to the loan and a bombardment of late and missed payment fees creating a snowball of debt that could see even the smallest of payday loan amounts become a huge, insurmountable figure that you just can’t see a clear way out of.
These days’ things have changed, for the better, but it still depends on how wisely you choose your short-term loan lender when looking for a payday loan or instalment loan. It might not have been your fault that you have lost your job, or another financial circumstance has come about that was completely unforeseen and could not be helped. If you cannot make the agreed repayments it can be a worrying time for all concerned.
The first thing to say is, try not to worry, as hard as that might be right now. Every single debt problem that you can imagine has a resolution to it that is in the interest of all parties. The bad old days of payday loan companies making things unbearably uncomfortable for borrowers has long since past. Your first port of call is to your lender to let them know the change in your situation.
Honesty is always the best policy and the modern and responsible payday loan lender can help you out from this seemingly critical situation. Your short-term loan lender will offer you guidance and point you in the direction of debt problem services as a starting point. But there are options too that can be explored. These options include taking a payment holiday for a month or two, to allow you to take a bit of time to find new work and to get back on your feet. Alternatively all interest could be frozen for the time being, or a set window of both put together to stop the worry and give you time to recover. As you can see there are safety nets in place, and it is not the end of the world in terms of your short-term loan borrowing.