Payday Loans: Look Before You Leap!!!

Trend of payday loan lenders has come into being since quite a long time but still not all the companies have put this into practice. In this, the borrowers avail loan on a very nominal base such that they do not have to pay lump sum to the lender. Since these are short term loans, these are usually ready and settled on weekly and monthly basis. There are a few companies that have given special name to the payday loan consolidation and these are called debt settlement model. Major drawbacks of this model are:-

1) The payday loan lenders may disturb the borrowers if they are unable to pay back the loan within stipulated time.

 

2) Once the lender is not satisfied with your payment policy whether it’s extended time or rate of interest, he will start to lose interest in you and that may be a bit disappointing from the borrower’s point of view.

Most of the companies take the payment from the borrower and look in for their fee collection first. They won’t agree to accept interest from you if they find it too less and not up to the mark. This does not establish good business relationship. Moreover if the number of payday loan lenders is more we continuously start getting calls from them which may put up the borrower under the state of stress that may have an adverse affect on his health as well. Therefore it is wise to have minimum number of loans that can be handled from time to time. It’s a healthy practice if no loan is taken at all.

Some of the concrete payday loan companies are very hostile in their approach especially if the borrower is unable to pay back the loan on time or the payment has been re-scheduled. So this policy must be avoided as much as possible. So we can conclude that one must be very particular about the terms and condition before going for a loan from the payday loan companies.