Can I get payday loans if I am claiming benefits
Most UK consumers are now aware of the fact that it is possible to apply for and receive minor financial assistance from the payday lender, even with a credit report that seems to have been through several World Wars. However, comparatively few fully understand the way in which in some instances it is even possible to gain assistance during periods of unemployment – temporary or otherwise.
Today’s leading doorstep lenders are for the most part very similar to conventional payday lender, though with a couple of important and potentially beneficial differences. With regard to the way they actually do business, doorstep lenders offer the same small sums of cash as the payday lender, which is to be repaid in full a few weeks later for a similarly low fee. Likewise again, the cash can be used for any purpose across the board and no credit checks will be performed – nor will applications be logged with credit reference agencies.
The biggest difference comes in the way the cash is delivered and collected – in person and at the home of the borrowers. Other than that, the application process is largely identical.
However, doorstep lenders have so far made huge strides in the name of openness and equality, by pioneering a range of new services specifically for the unemployed. The theory of a growing number of doorstep lenders is one whereby a stable source of income in the form of benefits for example is just as valid as one coming from regular employment – why should such applicants therefore be ruled out?
Just as is the case with the payday lender, the only matter of importance is that of whether or not the cash can be repaid in full and on time – the rest is entirely irrelevant. As such, is the benefit payments being received are sufficient to easily cover the balance and allow normal life to continue with ease, why should the applicant be turned down for not ticking just one box?
Of course, common sense has to be exercised and the somewhat open-door policy of the doorstep lender forces the imposition of steep fines and penalties for those who choose to abuse the products and services on offer. As such, doorstep loans must never be seen as a means by which to take home free and easy cash in tough times, as they bring along serious responsibilities that must be understood before making an application.
Today’s leading doorstep lenders are for the most part very similar to conventional payday lender, though with a couple of important and potentially beneficial differences. With regard to the way they actually do business, doorstep lenders offer the same small sums of cash as the payday lender, which is to be repaid in full a few weeks later for a similarly low fee. Likewise again, the cash can be used for any purpose across the board and no credit checks will be performed – nor will applications be logged with credit reference agencies.
The biggest difference comes in the way the cash is delivered and collected – in person and at the home of the borrowers. Other than that, the application process is largely identical.
However, doorstep lenders have so far made huge strides in the name of openness and equality, by pioneering a range of new services specifically for the unemployed. The theory of a growing number of doorstep lenders is one whereby a stable source of income in the form of benefits for example is just as valid as one coming from regular employment – why should such applicants therefore be ruled out?
Just as is the case with the payday lender, the only matter of importance is that of whether or not the cash can be repaid in full and on time – the rest is entirely irrelevant. As such, is the benefit payments being received are sufficient to easily cover the balance and allow normal life to continue with ease, why should the applicant be turned down for not ticking just one box?
Of course, common sense has to be exercised and the somewhat open-door policy of the doorstep lender forces the imposition of steep fines and penalties for those who choose to abuse the products and services on offer. As such, doorstep loans must never be seen as a means by which to take home free and easy cash in tough times, as they bring along serious responsibilities that must be understood before making an application.
Can you defer the repayment if you run into difficulties?
One of the most ongoing horror-stories that surround the subject of the payday loan is that of the “poor and unfortunate” soul stung with biblical charges after failing to repay his/her loan for a very, very justified reason. The tale tells of a borrower that begs and pleads with the loan store for a deferred repayment schedule or something of a compromise, only to be told that his/her £100 loan will now be costing them at least £66,000 for every day it remains unpaid. Of course, most can read between the lines enough to figure out that a little exaggeration is evident in such examples, but the basics behind them are nonetheless enough to put thousands off money lenders altogether.
So, all of the above begs a simple question in order to clarify – is it possible to defer the payment of a payday loan if needed? Will the lender really turn a blind eye and pile on the penalties while laughing all the way to the bank? Well, the simple answer is that it depends 100% on the lender chosen for the loan in terms of their professionalism or otherwise. Use the common sense needed to vet a payday site by way of customer feedback and it becomes perfectly simple to rule out the latter of the above in a heartbeat and know that all problems will always be fairly discussed and resolutions offered. In literally 99 out of 100 instances today, a reasonable company will always be willing to offer payment deferrals or additional instalments in order to ensure that the borrower is able to keep his or her terms. Every time a lender adds excessive fees and charges onto the balance of a struggling borrower, all they are doing is building the borrower’s reluctance to repay and in most instances kissing goodbye to their own cash once and for all. Needless to say, this is not a business model that works and has thus been all-but eradicated. Given sufficient notice and the honesty required from the borrower, a website will ALWAYS be willing to discuss fair and affordable solutions. On the other hand however, opt for the “ignorance is bliss” approach and fail to bring the problem to the attention of the company and chances are the result will be one of relatively steep fees and charges. Lofty penalties are the only means by which payday lenders can safeguard their businesses due to the ease of access they offer, therefore when and where they are called for, it is generally unfair to blame anyone other than the borrower – if being brutally honest. |
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