Borrowing When You Have an Existing Payday Loan

Financial difficulties seem to mount. When a person has one financial crisis, it is often followed by another in a very short period of time. Individuals may find they run out of options as a result and turn to payday lenders to see if they can obtain an additional loan. However, responsible lenders tend to refuse individuals in this situation. Although this may not seem fair, they have reasons for doing so. Why would a lender refuse an applicant and what other options are available to the person in need?

Why Lenders Often Won’t Provide Additional Funds

Payday loans are meant to be a short-term solution. When a person takes out multiple loans of this type, they pay a higher interest rate on each loan. As a result, it becomes easy to fall behind on payments, and a person may quickly find they are in over the head and cannot make any of their financial obligations. A responsible lender does not want to see this happen, as it hurts both parties. The borrower cannot make the payments as agreed and collection actions must begin. The lender is out his or her money and has the hassle of the collection process. It quickly becomes a bad situation in every way.

Other Options Available to Individuals in Need

A person who finds they need cash may have other options open to them. First and foremost, speak to the person the money is owed to and determine if a solution can be identified. In many cases, the entity is willing to work with the person to find a solution that works for all. If this is not the case, family and friends may be able to help with the needed funds. For those who cannot make use of one of these options, a number of organizations exist to help people with debt. Contact one or more of these organizations for help and advice.

If you are in need of funds, contact MoneyBoat (www.moneyboat.co.uk). An affordability assessment will be done to see if you qualify for a loan. Many people do, but you need to make certain you are borrowing responsibly. Doing so helps to ensure the loan does not lead to additional financial problems, as nobody wants this to happen.