Responsible Lending for Payday Loans
What is a payday loan?
A payday loan enables you to access money very quickly when you cannot wait until your next pay date. This is meant to be a short-term solution only. If you are concerned about your finances or are in need of a long-term solution, please seek the advice of a credit counsellor.
Is a payday loan for me?
If used responsibly, a payday loan can be a great tool to provide assistance during a time of financial need. If not used responsibly, however, this type of loan could end up causing an even bigger financial burden. Please refer to the example chart below:
| Responsible Payday Loan Use |
Inappropriate Payday Loan Use |
| To cover unexpected expenses |
To routinely cover your living expenses |
| To relieve a temporary cash shortage |
For extra spending money |
| To avoid being overdrawn with your
bank and incurring bank charges |
To pay off another payday loan |
Please consider your overall financial situation to ensure that a payday loan will be a short-term, occasional solution. If you find yourself needing more money every time you repay your loan, this might not be the right option for you.
What can I do to ensure I use my payday loan responsibly?
- Never use a payday loan for a long-term financial challenge.
- Never borrow more than you will be able to pay back on your scheduled repayment date. Otherwise you may incur late charges as well as fees from your bank.
- Never borrow money from a company that doesn’t practice responsible lending.
- Always make sure you choose a company with superior customer service and that puts your best interests first, before making a profit.
- If you find that you are taking another loan immediately after you repay the previous one or are rolling over or refinancing payday loans then you should seek debt advice from one of the agencies listed here. Payday Advance UK strongly advises against rollovers for the same reason.
How does Payday Advance UK practice responsible lending?
Payday Advance UK’s lending partners will not issue a first loan that exceeds 30% of a person’s net income. This is to ensure that customers are not borrowing more money than they can pay back. Once becoming an established customer consistently paying back loans on time, the loan limit could be increased.
Payday Advance UK always sends an automated reminder email two days prior to your repayment date. This is to ensure that the loan is repaid in full to avoid potential charges from the bank. Another reminder email is sent on the actual repayment date.
When requesting a loan from our lending partners, you can be assured there will be no hidden fees or extra charges.
At Payday Advance UK we take the utmost pride in ensuring your information is always kept completely confidential.
Payday Advance UK has customer service representatives available to answer any questions or concerns throughout, during and after the entire loan process.
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