Why Doorstep Loans
There are circumstances when you are left with no other options but to avail of unsecured personal loans such as doorstep loansto patch pressing financial problems. As long as you borrow within your means and pay your dues on time, you shouldn’t encounter problems. The interest rate may be high but it compensates through providing borrowers with quick cash. Doorstep loans also come with a few advantages that make it a better choice than payday loans.
In terms of convenience, for instance, doorstep loans offer faster processing and more favorable repayment set-up. Instead of paying the loan at your lender’s office, doorstep loans lenders send out an agent or representative to collect the money from home. In other words, you won’t need to leave the comforts of home in order to make sure that your loan is paid off on time.
Cost is another advantage doorstep loans have over payday loans. While payday loans have average representative APRs at about 1,000%, doorstep loans are cheaper at about 400%. There are doorstep loan lenders that charge more but there are now more lenders offering cheaper deals.
Another plus point for doorstep loans is the more flexible repayment terms. Payday loans, in general, are required to be repaid in 28 days. Doorstep loans, on one hand, may be repaid longer than that, usually for a few weeks or a few months depending on your set-up with your lender.
In the end, however, whether you opt for a doorstep loan or a payday loan, the key is to make sure that you can repay to loan until end of term. Also important is to make the loan a one-time solution to your financial problems to avoid getting trap in a cycle of debt.