Many people opt to get a payday loan. From paying an unexpected everyday expense such as a rise in rent, a utility bill, or an emergency medical expense, to an unwanted car repair or appliance malfunction, there are many reasons some of us require an extra amount of money. When either family or friends cannot help, a secure loan firm, such as Loan2Payday.co.uk can be of immense help. And with the new regulation in place, you can be sure your dealings will be fair.
New FCA regulations… What are they?
With all the loan shark type loan firms driven out of the market, you can be sure you will be treated fairly and pay only what is due, loan plus fees, and nothing more. In the past, you could have come across a lender that would have left you bankrupt, but not anymore. Now, you cannot be charged more than 0.8% your borrowed sum a day, and will not have to pay more than 100% in case you cannot deal with your debt in time, for whatever reason. This means that if you borrow a £100 for a 30 day period, you will only have to return an additional £24, which is great!
What not to do
While you will only be charged either 0.8% a day of whatever sum you borrowed, or maybe less, you do have to understand your own budget. A payday loan is here to help you either make ends meet or solve whatever ails you financially. It is not made so you can purchase expensive things you cannot afford; it only helps you until payday. Many people do not understand this and constantly borrow money to live beyond their means. When they cannot afford to pay back the said loan, they blame the lender. You do have to be sensible. A payday loan’s main benefit is the speed of availability that takes a sudden burden off your shoulders.
First thing is first, payday loans do not require much paperwork and are quite fast, enabling you to quickly solve your problems. Secondly, if you thought otherwise, in case your bank balance is seriously lower than needed, a payday loan is way cheaper than an overdraft and a better solution. Depending on your bank, you can be charged £5 or more a day for an overdraft, which can be quite high.
Many banks charge close to £100 a month for even being on an overdraft. To put things into perspective, think about the £124 you will have to pay a payday firm for borrowing £100 for 30 days. Now, think about the fact that Santander can charge you £70 for the same borrowed amount, making your debt £170. Lloyds, TBS and HSBC go even higher, with a fee of £80, and RBS charges £90. It is mind blowing.
Now, if you thought that banks are cheaper than a payday loan, think again. With good lenders, such as Loan2Payday.co.uk, you will still have to pay a lending fee, however, it will be much smaller. Thanks to the FCA, Yes, you can now have better, secure dealings and not have to worry you will be ripped off anymore.