Doorstep Loans vs Payday Loans
We’ve all seen the news recently that Payday lender Wonga have gone into administration meaning that over 500 people could potentially lose their jobs in the coming year.
Many people think that all consumer credit lenders operate the same way, but this simply is not the truth. Below are some key features of Doorstep Lending that customers should consider if they are thinking about taking out a consumer credit product:
Online lenders are exactly what they say, online. They do not offer a face to face human solution to any problems that customers face, whereas a trusted doorstep lender will have a friendly local agent that can answer any of questions and concerns and make things simple for customers to understand in the comfort of their own home.
In contrast, many online lenders offer a service called Payday Loans. Payday loans are, as the name suggests, very short term loans. They are designed to tie you over until your next payday, and in some cases these can be one off big repayments for customers to try and manage and payback.
Most Doorstep Loans are spread over a longer period of time, allowing customers to pay back the loan in smaller segments over longer loan terms. At Estone we pride ourselves on our flexibility by offering loans from as little as 12 weeks and as long as 102 weeks. This flexibility helps customers choose a repayment period that is manageable to their individual needs, and affordable to their circumstances.
A Payday Loan may appear like a good idea at the time until a customer circumstances change and things can get complicated. Payday lenders usually add on extra interest and maybe even roll the loan over meaning they would borrow you even more money to cover the repayment, charging you extra interest as they went along. This is how some people begin by taking out small loans and ended up with very large balances that are unrealistic to repay, this can have a snowball effect that leaves consumers vulnerable to unmanageable debt.
At Estone we don’t charge a single penny for late or missed payments. This means that if you have a change of circumstances part way through paying your loan back; it won’t cost you anything extra. With an Estone loan, you know the total amount you pay back at the beginning and you know it will never increase. We charge no late payments fees, hidden fees, or administration fees. It is simple transparent lending right from the beginning of the loan.
To summarise here are the advantages of a Doorstep Loan:
- The personal touch
- More control and more choice
- No rollover of interest
- No late payment fees
Got a question about Estone? Give us a call on 0121-522-4687