Payday loans are known as a quick and easy way to access emergency cash . But do you know the rights and responsibilities as a borrower's short-term cash advance ? It is important you educate yourself and understand your responsibilities as a borrower before you finalize any loan .
There seems to be more to the story than people snubbed by lenders bad for the money . Be careful which lender you choose to borrow from . There is a big difference between legitimate money collection and harassment by the lender .
Payday loans are short term loans that allow individuals to borrow money until the next payday . The borrower agrees to repay the loan amount , in full , plus interest when their next salary arrives in the bank . Loan payments are debited from the borrower 's account on the agreed date .
It may sound simple but your primary responsibility is to pay back short-term loans on the agreed date . If you do not pay back your loan on the agreed date , your lender has the right to contact you and arrange for payment . If the payment fails , you as the borrower will be responsible for additional costs and interest on your loan because you will be in breach of the original loan agreement .
If you think you will struggle to pay the full amount , do not let unresolved , this can prove to be very costly in the long run . Much better to contact your lender and en - quire about reduced payments until you can remove the remaining amount . Responsible lender will do everything they can to help you stay in control and provide you with payment options should you need them .
A lender has the right to contact you regarding the payment of the loan , however , they are not allowed to contact you more than three times per week or during unsociable or unreasonable , and they should not be intimidated or threatened in any way - this is considered as harassment and you have the right to report the lender if you receive this kind of treatment . Good lender will contact you , send an email or letter and you will only hear from them during business hours , Monday through Friday .
In some extreme cases , if the borrower refuses to agree to a payment plan and do not pay back the loan , the amount can be a problem for the courts . When this happens , the interest is applied and the court's decision could seriously affect your credit rating . When you are struggling to pay loans , try to arrange a payment plan and avoid the court's decision .
Difficulties can arise for any of us at any time . The biggest reason people struggle to pay their creditors lose their jobs . If you lose your job and the benefits then you should immediately get professional advice about dealing with your debts until you are working again and have a steady income once again .
Responsible lender will always make clear the terms and conditions before the loan agreement is being finalized . They also will clearly give the details of your loan costs , interest costs and any costs associated with it . You also need to be told what you will be charged if the loan defaults or late payments .
If you are considering a loan , either short term or if not , you should always make sure that you understand your rights and responsibilities . Additionally it is very important you realize you will enter into an agreement with your lender . Make sure you borrow from a reputable , responsible lenders will help you to borrow with peace of mind .