The relatively recent phenomenon of the payday loan has caused much heartache and suffering for millions of hard-working people in the UK. The problem has grown over time because of the banking crisis and the consequential downturn in the economy. Faced with the prospect of balancing their books, traditional banks and financial institutions have been forced to tighten up their lending guidelines – leaving millions of people without access to credit for emergencies.
Payday loan providers apply exorbitant rates of interest to their cash advances. If people can pay their loan off on time, such a service can be cheaper than an unauthorised overdraft. The problems start, however, when people are forced to defer repayment, or when they simply don’t have the cash available. Initially modest amounts can quickly snowball out of control, leaving people with debt mountains they have little or no chance of repaying. Some people decide to tackle debt problems on their own, and sometimes with great success. However, that is not always the case, and there are four very pertinent reasons why dealing with payday loan debt yourself could end in heartache.
Your Ignorance of the Law May Be Exploited
Most people are not in possession of all the legal facts when they decide to take creditors on without expert help. There are some unscrupulous lenders who take advantage of this fact to pull the wool over the eyes of unsuspecting consumers. However, a debt help specialists will have a thorough and detailed knowledge of the law, and that knowledge will be used to protect your interests.
Dealing with Aggressive Creditors Can Be Stressful
For most people, the prospect of mounting a legal challenge or negotiating improved repayment terms is simply too much to cope with. Living with debt can put a strain on almost every facet of your life, and adding to your woes by fighting your case alone can hinder your ability to make a reasoned case – jeopardising your chances of a favourable outcome. Thankfully, debt help advisers have experience in dealing with creditors and the legal framework that governs debt management. This know-how can be used to provide support and peace of mind at a very stressful point in your life.
You Could Increase Your Debt Levels
Dealing with creditors yourself puts you at the mercy of other unscrupulous lenders. Applying for debt consolidation loans or accepting new repayment schedules may seem like a good idea at the time, but they will often increase your total debt burden – making the prospect of a debt-free life seem more distant than ever.
You Won’t Have the Expert Legal Advice You Deserve
In the event that your case ends in court, you need to be sure that the entire weight of the law is being utilised to give you the best chance of a positive result. Professional help with debt does not just involve practical advice and expert negotiation skills (although they are vitally important), it usually includes advice from some of the best legal minds in the field of consumer debt law. This type of legal advice and guidance would cost you a small fortune if you were to turn to a solicitor for help.
If you’re concerned that turning to a debt specialist for help with your payday loans is a sign of failure, don’t be! Asking for help is a sensible and practical step towards securing a better future for you and your family.
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