A growing number of people are turning to quick cash loans for financial help as the cost of living rises and many can’t afford to make ends meet.
New figures show that five million British workers are now living below the basic living wage and many are struggling to cope with rising living costs.
As more and more people turn to same day loans to keep them afloat until their next payday, here is a brief look at some of the fees and costs involved.
What are upfront fees?
Upfront fees are fees which brokers sometimes request from borrowers before finding a suitable loan for them. Brokers say that once they receive the fee they will start shopping around to find customers the best possible loan based on needs and requirements.
Typically, they will charge around £50 for the process; however, this can reach £12,500 or more. Many unsuspecting borrowers believe that paying the extra cash means they will get better services, however, this is not always the case. Brokers do not have access to exclusive loans as they all have access to lending products.
Ultimately, paying an upfront fee could see you losing out rather than reaping the benefits of a cheap loan.
It could be worth noting that brokers who do require upfront fees might be less inclined to find their customers the most suitable and appropriate loan, because they have already collected a fee and made a profit.
How to avoid upfront fees?
There are a number of lenders who offer unsecured personal loans without extortionate upfront fees. Specialist online providers offer quick-cash loans, an easy-to-follow service and a fast return of the cash.