PAYDAY LOANS AGREEMENTS

A Payday loan is a short-term loan provided to you when you are in utmost need of it. In today’s world where there is an enormous increase in inflation and petrol prices are reaching the sky, circumstances are very difficult for a common man to fulfil all his needs and lead a tension free life.

Payday loans can give you a solution to meet your needs instantly by providing you with instant and cheap loans. You can get payday loans even if you have a low credit rating and only have to pay it back when you get your next pay check.

There are certain agreements for getting these payday loans, which you need to review carefully before making an application. Some tips that will help you out in this process are

• Firstly, make sure you read the agreement carefully to avoid any mistakes.
• Be sure to think about all the details like:

·         Loan amount

·         Date and time of repayment

·         Interest rates

·         Details for renewing the loan

·         What happens if you cannot pay back the amount on time?

·         Any other special conditions included?

·      Verify, all the verbal promises made to you are being  included in the agreement

·      After you finish verifying the agreement make sure that all terms are filled, remember never sign an agreement with missing terms.

·      Keep a copy of the agreement in order to avoid risks in future

In the Payday loans agreement there is a clause related to payment schedule. Payment schedule specifies the date and time when you need to payback the amount, failing to do so will result in the renewal of your loan which will again cost you additional charges. In some cases, there is a clause added in the agreement regarding automatic renewal of your loan. If you do not perform some additional steps specified to stop the process, even if you have enough credit in your account to repay the entire amount, the loan will still be renewed. You need to be very careful with these clauses and read and understand it properly before signing it.

In the present year according to the latest news, the Payday loans firms have agreed to provide voluntary guidelines as agreed with the government, in which these firms provide commitments to increase the transparency about the repayments process. It is done with the view that borrowers are not surprised with the hidden processes and also to provide affordable interest rates so that the loans can benefit not only the firms but also a large group of people.

About the Author:

Sarah is a tech and finance writer from UK. Catch her @financeport