Doorstep loans or Weekly collection loans have been around for generations. When you take out a doorstep loan a local agent will give you money or from time to time vouchers. They’ll then call round to your house to collect repayments, usually once a week. You’ll normally get a payment book to record the payments that you’ve made.
Some larger doorstep loan companies such as Provident, Greenwoods and Loans at Your Door operate across the UK and Ireland. There are also lots of smaller local doorstep lenders.
The rate of interest or APR on loans at your door is usually 200% or more, and they’re normally paid weekly back over 6 to 9 months. As a rough example, you can probably expect to pay back £150 to £180 for every £100 you borrow.
Doorstep loans are a classy way to borrow cash so think carefully before taking one out.
This APR is lower than a typical payday loan, but because doorstep loans are paid back over a longer time the total amount you’ll pay can be like.
If you’re considering a doorstep loans at your door you can locate out more about the costs at the independent Lenders Compared website. This lets you evaluate how much each doorstep lender in your area charges so you can find the cheapest.
If you’re thinking about taking out a doorstep loan no credit check, think these cheaper options instead:
Try your local credit union. They issue small cash loans paid back over a like time to doorstep lenders. But interest on credit union loans is capped at a great deal lower 42.6% APR
If you’re on benefits and you have a crisis expense, you may be able to get a budgeting loan. Find out more on the GOV.UK website.
Many local authorities offer help to people in emergencies. This may comprise money loans or food vouchers. What’s available varies a lot from area to area, so contact your own local authority to check if they can assist.
If you miss payments to your doorstep loans at your door the agent will ask you to catch up. There may be extra charges added if you miss payments, although some doorstep lenders don’t add any.
Sometimes you may know the agent for me. This can make it harder to explain if you can’t pay. But remember that your Home Credit Finance is the same as any other debt, and they don’t have any extra legal powers. The agent isn’t a bailiff, and they can’t come into your house or take no matter which from you. They can’t force you to pay cash you don’t have.
If you don’t pay back the arrears you’ll get a default notice. By this stage, larger doorstep loan companies will usually deal with your loan from their head office and you may find the agent stops calling. This can make it easier to deal with the debt.
After the default notice, the get benefits of doorstep cash loans can then take further action. For more information on what action a doorstep lender can take to collect a debt, read what your creditors can do.
Taking out expensive types of credit like doorstep loans leeds can be a warning sign that you have a debt difficulty.
If you’re considering taking out door loans cash your hand, or if you’re struggling to pay a 3 to 6 month, we can give you free of charge and fair debt advice. Use our Debt Remedy tool, or contact our Helpline (free from all landlines and mobiles).
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