The Medway Council in Kent has put in a bid to ban payday loan shops in Medway, asking the Government to change planning laws. Payday loan companies offer financial relief during difficult times, yet a minority of firms have begun to give the industry a bad name.
Whilst there are many law-abiding payday loan agencies out there, there are a growing number of individuals who have had a bad experience with their financial help. This boom in dishonest companies is likely due to the temptation of fast profits. With the economic climate in disarray, the market is undoubtedly a profitable one, and unfortunately many providers see this as an opportunity to cash in on the vulnerable.
These types of companies are likely to con their customers through extortionate interest rates, or failing to outline their terms and conditions. However, it is possible to avoid this type of firm altogether by knowing what to look out for. Make a point of sidestepping those who don’t list their terms and conditions clearly on their website. An honest payday lender will always be happy to explain these in further detail if you are still unsure.
It is essential to research the market before selecting your chosen lender. Be sure to look into the current average interest rates and compare this figure between companies. What may seem like a convenient quick-fix option, could turn out to be a financial burden.
Another cause for alarm would be a lender who is only too keen to push their services on you. Those who will offer a loan to almost anyone, regardless of their age and employment circumstances should most certainly signal alarm bells, especially anyone who is willing to lend to those under eighteen years of age or without a job. An honest pay day loan provider would always suggest addressing your budgeting strategy first and considering all options before taking out a loan. They would also only lend to those in a position to be able to make repayments.
It would also be advisable to target a company who not only provides you with sufficient information about them and their services, but also guidance on the industry in general. Companies who provide this are more likely to be concerned with your financial welfare. Finding a company that offers you a reputable service, with a trusted name, can be a valuable respite during difficult times. Whether you face extra high utility bills or unexpected costs in some form, taking out a loan in the right circumstances can indeed be a sensible move.