The fifth thing to be aware of is – what rights you have as a borrower. In New Zealand registered lenders are bound under the Credit Contracts and Consumer Finance Act, what this Act does is provide a set of rules for lenders to abide by, as well as giving the borrower some rights to help keep them safe. Lenders must disclose all loan information in the contract clearly and accurately, they cannot enforce oppressive fees or loans on their borrowers and they cannot collect or enforce contracts in oppressive ways. The Act gives the borrower the right to cancel the contract within a few days of it being signed, it gives them the right to repay what they owe early and it lets them ask the lenders to change the conditions of their contract, if they come across unexpected hardship. It is important to know your rights when it comes to short term loans, it will give you far more confidence if you feel that something isn’t right.
The sixth and final point is something I am sure everyone plans on when taking out a quick payday loan, but not everyone achieves. For a payday loan to be worth it, you must pay it back on time. Missing payments will only result in fees and extra interest payments; these fees and interest can be what turns a loan like this from a lifesaver to a soul crusher. You need to know that you will be able to make payments before you take out the loan, if there is any doubt, then you need to borrow less or not take the loan at all.
If you give thought to these 6 factors, then you should be able to take out a payday loan without hassle and have it work for you.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.