Anyone who has taken out a payday loan will remember the horror stories from a decade or so ago when payday loan companies were treating customers as cattle that they could not care less about. The shock that was found by the nation implied that every single payday loan company was essentially a leech, only there to suck borrowers dry by placing impregnable amounts of interest on top of initial sums borrowed, ensuring that the debt would last for many years and the borrowers themselves would spiral into a debt that was unmanageable all round.
This is no longer the case thankfully, but it has taken a long time for a responsible set of payday loan lenders to arrive on the scene and start washing away the bad scent of the past incarnation of the industry. These days there is a lot more thought that goes into the service as a whole, from the simple website where applications for a payday loan can be made easily and quickly in just a few short minutes, to the concerns over the restriction to applicants with bad credit but who can demonstrate willing and ability to pay back loans on time without getting into greater debt, right through to how customers are managed once they have taken out a payday loan.
It is important to understand that if you have taken out a payday loan with a responsible lender, you do have plenty of options open to you if you get to a point where there is a change in circumstance and you are unable to make your next payment, or you can make your next payment but it will mean you do not have enough cashflow to afford to pay your rent, bills, or to buy food to live on. It is these very situations that made the few bad eggs in the initial payday loan industry paint the entire industry bad through terrible actions against borrowers who knew no better at the time.
If you have taken out a payday loan and you are worried that you might struggle to keep up with payments, or you have lost your job or suffered an accident or illness that might damage your prospects of gaining employment, it is important that you contact your payday loan service immediately. The responsible lenders will always be able to give you an honest answer, and one of the best options open to those today is that of a payment holiday.
A payment holiday works by pausing payments for a set period of time, allowing the borrower some time to rectify any problems they may be facing. This can be for one-month and one payment, or for a longer period of time depending on the specific situation. This helps the borrower, but it has also helped to increase trust in the industry and boosts brand reputation and recognition for specific payday loan lenders that provide flexibility through payment holidays.