Everybody works hard to find a great job and live a good life. However, sometimes misfortunes can happen. Whether it be a health scare or an extremely important, yet unavoidable event, dealing with the unexpected can be costly. And not many people can afford to come up with quickly with a certain sum of money. In these cases, a payday loan is the best option.
Before you start thinking this is not a good idea, rest assure. There are a few regulations effective since January 2nd 2015 that will ensure your dealings are fair and you will not be ripped off. Lenders are required to act in a fairer way and make cheaper, better deals. The loan shark types of businesses have been driven out of the market and those still operating now, such as Loan2Payday.co.uk, will help solve your unexpected problems without all the stress and an unpleasant outcome.
Presently, lenders can only charge 0,8% a day of whatever the borrowed sum is, including all extra fees and interest. This is great news for many people who need a loan but used to be fearsome of the system. Another great piece of information is the fact that if you do make the leap and borrow a certain sum, you will not be charged more than 100% of the said sum, regardless of how long the debt lasts or what changes are incurred.
If you will be having a hard time paying back the loan, for whatever reason, you will be glad to know that any potential charges that come with late payments cannot be more than £15, no matter the situation, amount of money borrowed or any other additional problems that may appear.
What does this all mean for you?
So, all the ‘bad’ lenders are extinct. Great! But not many people can understand interest rates and fees. What does this really mean? Well, all lending companies have different maximum amounts you can borrow, as well as a maximum time for the return of the said loan, as everyone knows. If you borrow £200 for 30 days, you simply cannot be charged more than £48 in charges and interest. This also means that even in the extreme case that you will struggle with paying everything back, you will not have to pay more than maximum £400 in total, regardless of the time it will take you to do it. As a plus, all the great loan firms operating, such as Loan2Payday, are quite competitive on the market, and you might just get a good offer, and be needed to pay less.
So, are these types of loans a little more expensive?
The answer is yes, but they are in no case leading to bankruptcy. And considering the fact that they do not require so much paperwork and hassle, you can solve whatever problem ails you financially in no time, pay the loan back, and go on with your life.
Dealing with problems
If your mind still isn’t at ease, it will be. With the new rules, the Financial Conduct Authority can always step in if any lender does not follow them. Rest assure, and make the best decision towards solving your problem.