Payday loans @ http://www.textloans1000.co.uk

1
What are payday loans?

• Payday loans are short term unsecured loans taken
  by the borrower to bridge the gap between days of
  cash crunch to coming wage day. These loans are
  very popular in UK because of fast approvals and
  money is available in the hands of the borrower
  in the same day of the loans applications. For
  payday loans eligibility one should be citizen of
  UK, aged more than 18 years and in regular
  employment with monthly wage of 1000 pounds. As
  these loans are unsecured so bears very high
  interest rates so one should apply for these
  loans for very short duration and up to the
  amount which he can pay in next payday.

2

• Who should avoid payday loan?
• Consumer associations and law makers always
  advise to the lower income group peoples in UK to
  avoid payday loans because these are very costly
  in terms of interest and fees. If anyone trap in
  the nonpayment loan cycle then lenders can make
  their life difficult by hiking loan amount in the
  name of fees, penalty, collection charges,
  country court judgments charges etc. And name of
  the default borrower may be put in bad creditors
  list this will make difficult them in future
  loaning. So if you have sufficient monthly income
  to repay the loan in due time only then apply for
  payday loans. For more info visit
  http//www.textloansuk1000.co.uk/payday-loans-faq.
  html

3

• What is purpose of payday loan?
• Payday loans are meant for short period loans
  like 7 days to 30 days. One can opt for these
  loans in mid of the month and repay at the time
  of coming salary day. Because these loans are
  unsecured and bears higher interest rates in
  comparison to regular installment loans so for
  long term payday loans are not useful. Payday
  loan amount may be varying between 100 pounds to
  1000 pounds as per need and repaying capacity of
  the borrower. But one should keep in mind that
  lenders charge higher interest rates for these
  loans so loan amount should be opted for minimum
  that can solve present cash crunch. For more info
  visit
• http//www.textloansuk1000.co.uk/payday-loans-faq
  .html

4

• Is any guarantor or collateral required for
  payday loans?
• Because payday loans are unsecured loans and
  lenders charge higher interest rates for lending
  so guarantor or collateral is not required for
  these loans. These loans are granted on the basis
  of regular income and repaying capacity of the
  borrower no other factor is important for
  lenders. Of course UK citizenship and regular
  employment of last six month is also must for
  borrower. Bad credit persons can apply for these
  loans as approval of these loans based on present
  financial status of the borrower but in some
  cases lender may perform credit check on the
  borrowers application. For more info visit
• http//www.textloansuk1000.co.uk/payday-loans-faq.
  html

5

• What is payday loan repayment procedure?
• Generally loans amount is directly debited from
  the borrowers account as and when it fall due. If
  balance in account is not sufficient the lender
  will charge a penalty with borrower and payable
  loan amount plus fees will be treated as rollout
  loan amount for the next payday. So if borrower
  feels he is not in position to repay loan amount
  in agreed time lines with lender then he should
  contact the lender immediately to find some way
  to solve this issue and lender is legally bound
  for this. For more info visit
• http//www.textloansuk1000.co.uk/payday-loans-faq.
  html

6

• What is continuous payment authority (CPA) in
  Payday loans?
• This system authorize lender to recover loan
  amount directly from your bank account. If
  balance in account is insufficient then lender
  will charge a levy in it. But lender cannot use
  CPA more than twice as per law nor can he takes
  part payment from your account. Penalty amount
  can be up to 15 pounds as caps fixed by the FCA.
  But borrower should be alert enough to maintain
  account balance on the due date to avoid any
  undue consequences. For more info visit
• http//www.textloansuk1000.co.uk/payday-loans-faq.
  html

7

• What are interests caps put by FCA for Payday
  loans?
• Interest rate cannot be more than 0.8 per day
  means APR up to 292. For example if you borrow
  100 pounds for 30 days interest will be 24 pounds
  and you have to pay 124 pounds after 30 days.
  Penalty for nonpayment is fixed up to 15 pounds
  and in any case total repayable amount cannot
  exceed two times of the initial loan taken. For
  more info visit http//www.textloansuk1000.co.uk/
  payday-loans-faq.html

8

• What if I am unable to repay payday loan in
  scheduled time lines?
• If you do not repay payday loan in scheduled time
  frame as you agreed with lender at the time of
  loan deal then lender may charge a fees up to 15
  pounds on your loan amount. So it will be good to
  tell in advance if you feel difficult in loan
  repayment then you can avoid this penalty and
  reschedule your loan repayment. At the time of
  loan application you should go for the loan which
  you can pay easily to avoid any surcharge by the
  lender. For more info visit http//www.textloansu
  k1000.co.uk/payday-loans-faq.html