Payday loans endure further investigation

Use these tips if you find yourself in a situation where you need payday loans to make ends meet.

09:14 01 July 2013

The Office of Fair Trading (OFT) has referred the payday loans industry to a review by the Competition Commission. Just a few months ago the industry was given suggestions about improving their practices and a good deal of the lenders are, or already have, made changes to ensure that customer’s needs are the focus.

 

Some say they would have liked to have an appropriate amount of time to see how things went after the changes were made before the referral. If you are considering loans to help you get by, here are a few tips.

• Leave yourself time. Waiting until the last minute to find funds automatically means you’ll have to use payday loans versus any other opportunities that might have been available. If it looks like you’ll need help for the month, start checking on available resources right away and you may not even need to get that loan.

 

• Comparisons. If it does turn out that you are in need of payday loans be sure to check around to multiple locations in your area, and even to some online lenders. Try to choose a lender who gives you a full disclosure about what you will ultimately pay and about your options, as well as one with a better interest rate.

 

• Be creative. Just because you’re having a difficult time making it to the next payday doesn’t necessarily mean that you need to rely on payday loans to help you out. Sometimes there isn’t any other way but if you’re a little creative you might find other ways to supplement your income. Selling items that you don’t need, use or want might bring you more money.

 

• Stretch your funds. You might be able to avoid payday loans by shuffling your bill due dates, or working out payment arrangements with other entities that you pay during the month.