A Guide to Payday Loans

About Payday Loans

Payday Loans’ is the term used to explain a very short term loan, typically the time it takes until you receive your next pay cheque which should enable you to pay back the money you owe (usually 30 days). There are good points and bad about such loans. As with all loans they are subject to interest – you pay back more than you borrow.

The Good Points About Payday Loans

1. To qualify for such loans is quite easy. The main criteria is the need to be in employment and earn a certain amount.
2. You gain access to the money almost immediately enabling you to get out of any awkward situation you might be in.
3. You can spend the money on whatever takes your fancy or pay any outstanding bill you might have.

The Bad Points About Payday Loans

1. The amount of money you can borrow is very limited, in most cases a maximum of a £1000 or so.
2. Interest rates are extremely high and you pay back a hefty surcharge on any amount borrowed.
3. You can get in serious financial trouble quite quickly should you fail to pay back the monies as and when agreed with the moneylender.

Avoiding Interest Payments

1. Have you exhausted all possible other resources for money? Have you asked a friend, a family member for a loan?
2. Do you really need the money or can you wait until your next pay day? Will your boss give you an advance?
3. Can you sell something or even pawn something to raise money?

Avoiding The Sharks!

1. There are many lenders and the best advice of all is to use quality lenders only. See ‘Quality Lenders’ Above!.
2. You can apply directly to leading UK Loan Providers using our ‘Loan Application Form‘.

Related posts:

  1. Short Term Loan Rates Guide
  2. Responsible Lending: Short Term Loans
Posted in Get Some Wonga!