Pay weekly loans are quite common amongst payday loans direct lenders. Major payday loans lender, Satsuma, offer this kind of repayment structure. Pay weekly loans are just another way to attract customers to a business. Here at Wizzcash, we stick to a more traditional structure of three monthly instalments when you choose to borrow from us. We believe that this helps you spread the cost of your loan in a manageable way – but without the term going on for too long.
Let’s Look At The Pros and Cons Of Both Repayment Structures
Monthly repayments are designed around the most common type of payment period. Unfortunately, we are unable to lend to those people who are unemployed or who cannot show a reasonable amount of income every month. This is because they cannot demonstrate how they are going to pay back their loans, without worsening their financial situation. Wizzcash use a pay monthly loan repayment structure, as opposed to pay weekly loans. Salaried employees are most commonly paid on a monthly basis, too. This means that customers are more likely to have the available funds in their account, ready to meet their repayments.
There’s a reason consumers are often encouraged to schedule their bill payments as soon after their payday as possible. This is because you are more likely to meet your financial commitments, like savings goals, when you do it at this time. This could apply to your outstanding payday loans, too!
Missing repayments can have an adverse effect on credit scores. It is important to us that we protect our customer’s financial security wherever possible. We believe that pay monthly loan structures is one small way we can make our payday loans more accessible and less risky for those people who really need them. In turn, pay weekly loans could offer the individuals that do get paid once a week a more suitable loan.
Easier, Simpler and Less Fuss
One of the biggest benefits of a monthly repayment structure over pay weekly loans is simple: There is only one date to remember in the calendar. As we just mentioned, missing a repayment date for any kind of loan will affect your credit score. It can place a black mark against your name, which could be seen by future lenders and affect your access to affordable loans in the future.
Pay weekly loans mean you have to remember the dates and check you have money in your account more often. It leaves more room for error – human and technological. If your cheque does not clear in time or you over spend throughout the month and you don’t have time to transfer a top up into the correct account, the automatic repayment is going to bounce. This can happen with monthly repayments too, if this does happen it will be marked on your credit score as a late or missed payment. In turn, late payments when it comes to payday loans will incur a penalty fee. This is capped at £15, but could be more avoidable if you opt for an easier repayment structure.
Wizzcash want to make the borrowing process as simple and safe as possible. To help customers, we send reminders of repayment dates, before we attempt to collect the money owed. If you opt for a pay weekly loans service that does the same, you’re likely to get messages from your provider, too.
More Time To Recover From Your Financial Emergency
When you opt for a pay weekly loans structure, you are likely to have a repayment due the week after you are approved. Here at Wizzcash, we strongly recommend that our customers only apply for a payday loan if they are experiencing a genuine financial emergency. Owing money so soon after you have dealt with an urgent situation like a boiler breakdown, a medical emergency or another serious emergency could be extremely stressful.
Although we want our customers to be aware of the gravity and responsibility of taking out a loan, we also want them to have enough breathing space to take control of their finances. We feel that pay monthly instalment loans are one of the better strategies to give this little bit of relief to our customers when they need it most.
A Simple Way To Make Loans Look More Affordable
Pay weekly loans could provide the flexible payment structure that is most suitable to some customers. However, breaking down repayments on a weekly basis could make them look more affordable. If they are a type of high cost short term credit, they will still have an APR of over 1000%. Regardless of the breakdown, this is an expensive way to access credit.
Wizzcash state that short term loans are not a cheap source of credit. Consumers should not plan to use them as a way of filling a financial gap or regular way of obtaining credit; they are a last-resort emergency loan. We break down our pay monthly loans so that you are aware of how much they will cost you and to confirm you are comfortable with this.
What To Do If You Cannot Make A Repayment
If you cannot meet a repayment of a loan you have with us, or another provider, it is crucial that you contact them as soon as possible. Here at Wizzcash, if you cannot make one of your instalments, we could work out a more suitable repayment structure.
We understand that many people do not want to acknowledge their financial situation when they know they do not have the required money in their accounts. This could be negligent financial behaviour and a really harmful habit to get into.
We will try to help you however we can, but we are a responsible lender. This means we work to FCA regulations and a strict lending criteria. Check out our dedicated loans page to find out more about the service we provide. Alternatively, we provide great insights and financial top tips over on our blog!