Criticism has been widespread for payday loans in recent years. This is mainly due to the seemingly high-interest rates. Whilst on the surface, this is the case, many argue that an APR (annual percentage rate) is not a fair indicator of interest. Certainly not for a loan over 30 days. They point out that if the repayment was made over a longer period, the loan would be extremely expensive. This would not be justified, but shorter loans are a different product where the rules differ.
As the Financial Conduct Authority (FCA), the financial services regulatory organisation have campaigned, various payday loan lenders have historically failed to perform adequate affordability checks on their customers. Put simply, they loaned money to people they shouldn’t have. They issued acceptances without performing necessary checks.
However, the argument against payday loans does not just stop with the lenders. Ultimately the borrower possesses a responsibility to use payday loans sensibly. To borrow within their means. Research the best path for you before committing to any form of borrowing.
Admittedly, borrowing is often largely driven by necessity, and in certain cases, desperation. The needs can be misguided by the lenders. However, in considering any form of credit, be it large or small amounts, you must give complete consideration as to whether the loan is right for you. Determine whether you really need it.
With the pressure immediately on the payday loan customer to repay within a matter of weeks, this can be a stressful period. Many think that larger amounts of money, which often is really required, is more difficult to obtain. Especially with banks lending rarely, and an unstable economy (at the time of publishing). This isn’t necessarily the case, and certainly, with Moolr, we take the legwork out of finding a willing lender.
Moolr prides itself in sourcing funding for potential borrowers. we look to say yes, but only if the deal is perfect for you. Our loans vary in length and amount. From 12 month loans, to 18 month loans. Or flexi loans for those requiring short-term lending.
What’s more, you control fully the length of repayment. Moolr’s process really takes the stress out of needing multiple applications, with multiple lenders.
It is not just the initial sourcing of the loan that is easy. Spreading the cost of lending is often a better way of borrowing. This depends on the individual’s circumstances. There is no pressure to find the money to repay the loan within a few weeks. Interest accumulates over the length of the loan. Thus, your loan can coincide with your ongoing income payments. In turn, this allows you to properly budget your income and expenditure.
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