Payday loans have become one of the most talked about financial services products of recent times and their use among the general public soars, to the extent that there are those who claim they will one day rival credit cards in popularity. The driver for the growth in popularity of these loans is no doubt the fragile economic situation which has persisted for the last several years. Because of these financial pressures more and more people are finding that money is tighter than it was before, meaning they have occasion to rely on short term funding from time to time.
Most people find that payday loans are a useful tool to help them keep on top of their monthly budget but there are some who struggle to pay back their loans on the due date which can cause an already difficult situation to become much worse.
Payday loans are simplicity itself to apply for and the fact that lenders do not normally require to carry out a credit check on applicants means that the chances of borrowers defaulting increases.
So what should you do if you find yourself in difficulty with a payday loan?
First up – do not panic. You are not the first person to find themselves in this position and you most certainly won’t be the last. You need to face up to the problem, rather than be tempted as many debtors are, to bury your head in the sand.
Get in touch with your payday lender in the first instance and explain your problem. Payday loan companies have received something of a bad press recently, but most payday loan lenders are responsible lenders and will work with you to achieve a mutually satisfactory solution. At the end of the day your lender is looking for a way ensure repayment and if this means agreeing some small concessions then most will be prepared to go down this route.
If, however, you are unable to agree some accommodation with your payday lender, then you may prefer to approach a debt counsellor, a charity specializing in debt issues. They have vast experience in dealing with these kind of problems and will be able to advise you on the best course of action.