Often when we think of PayDay loans we are met with a specific image and commonly this is not a positive one. The reputation of instant payday loans is that of a company who charges high amounts to borrow money quickly. The idea of a PayDay loan is that you repay the full balance on your next pay date, repaying the amount you borrowed and the interest applicable. I think it’s safe to say quite often this amount is outside the realistic affordability of the consumers looking to have a little extra to see them through. In such cases customers often find themselves with little option but to pay simply the interest on their next pay date and hope in the following month repayment in full will be in their reach.
This ability to find yourself in a circle of simply repaying interest monthly is very reflective of the image of instant payday loans because the promise if instant cash is presented and offered, sometimes within 10 minutes. We could therefore argue such lending is available far too readily and more often or not leaves consumers in a position they weren’t quite prepared for.
That’s why it’s now very refreshing to see an alternative to instant payday loans in the form of instalment based products, where from the outset customers have the choice in terms of the period of repayment. They can select an option which realistically suits them, instead of opting simply to take the funds and pay a lump sum. Now that instalment loans have arrived consumers are presented with better variety and can plan their repayments sensibly and let’s face it, isn’t variety the spice of life.
About the author:
Kelly Hollingsbee is the Operations Manager of True Blue Loans (www.trueblueloans.co.uk), a company offering instalment loans over 3, 6 or 9 months, with fixed repayments and no fees, just daily interest.