Pay Day Loans – Managing your debts

As we all know several years ago there was an explosion of new lenders in the short term lending market, these lenders all offered the same thing known as a Pay Day Loans. Within a few short years the number of companies offering a small amount of cash over a short period of time was endless, suddenly there were hundreds of companies ready to lend you money when you needed it the most. That said it soon became apparent that whether you ‘needed’ the money or in actual fact just ‘wanted’ the money, made no difference, it could be yours within just a few short hours. This itself opened the online world of lending up to a massive growth as consumers were suddenly offered cash simply for completing an online form and if they wanted, could lend from many companies, ultimately acquiring a lot of cash to be repaid when their pay day rolled around. It’s no secret that as a result of this somewhat ‘easy’ cash consumers found themselves in a position where they had borrowed more than they could realistically afford.

Often this predictable outcome was blamed on the lenders themselves, stating they should not have lent in the first place. That said I think it’s important to recognise that a level of accountability should be taken by the consumers themselves also. As I touched on above the massive expansion of PayDay lenders UK that became available presented consumers with a vast number of options when selecting who to borrow money from. I think for some, the temptation was too much, instead of borrowing for a specific purpose, such as a broken car or time off work unexpectedly, consumers used these sites to fund deposable income. Quickly it become easy to borrow an extra £300.00 for a weekend away or a quick £100.00 for that pair of shoes that simply had to be brought. This resulted in consumers building debts which needed repaying and fast to avoid growing interest charges.

The important point to focus on here is that such consumers are not alone. As the Pay Day Loans UK market becomes more regulated and lenders become more selective in their lending decisions hopefully the number of consumers with PayDay debt will reduce but in the meantime it’s important to understand that there are ways to manage such debt, without running away from it.

Although frequently PayDay lenders UK receive a very negative response from the media and are held in a low regard by many financial experts, it’s vital to understand these lenders do actually want to work with their consumers who are struggling to make repayment. Many of these lenders have dedicated internal representatives who are ready to advise of a mutually acceptable repayment agreement for the outstanding balance. I would always recommend the consumer call their creditors and discuss the situation they are in; after all if the lender doesn’t know you can’t afford to make repayment, why would they assume you have the intention to? Often consumers are pleasantly surprised at what can be agreed which is suitable to both them and PayDay loans UK based lender. Ultimately it is crucial to remember by working and communicating with PayDay lenders, all parties concerned can move forward with peace of mind that the debt can, over time, be repaid.