Now we have new regulation of payday lenders they will have to abide by new rules which should help borrowers hopefully get better deals and borrow sensibly. However, if you are constantly finding the need to use monthly salary sized loans to get through then you may need to work on a longer term solution of solving debt issues.
The Financial Conduct Authority (FCA) took over the governance of short term lenders in April, but gave them three months to bring their practices up to scratch. These apparently include no longer rolling over loans more than twice or making continued withdrawals from borrowers` bank accounts.
Loan rollovers see deadlines extended, with the extra interest that comes with it, while lenders were able to use continuous payment authority notices to go direct to the borrower to recoup cash. Now they`ll only be able to do that twice and only for the full amount, not a partial amount which may leave the borrower without money for essentials.
However, debt charity StepChange wants more to be done to tackle the issue of people taking on multiple short term loans each year, with close to 14,000 applying for five or more.
If you do not have the savings or family who can afford to help you then you could look into securing a higher income through a new job or reducing your outgoing through life style changes and cutting down on extravagances. If you are not able to go these routes you could loom into a borrowing solution through consolidation loans. These may get to the root of your borrowing problems by paying off all your unsecured loans in one go, leaving you with a single lower payment each month and importantly improving your cash flow.
Over their lifetime, personal unsecured or secured loans may cost more in terms of interest, but if you can get the right product it may help you navigate the debt maze.
If you are interested in homeowner secured loans, a personal loan or even a guarantor loan speak to us without obligation on 0800 298 3000 or 0333 003 1505, otherwise enquire at firstchoicefinance.co.uk and we will call you.
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