Payday loans

Payday loans are designed for working people who need an advance on their pay, usually for an unexpected bill or a hurried payment, or just to keep you afloat financially until payday. When payday comes, you have to repay the loan.

Payday cash advances are a quick and simple way of boosting your immediate finances. They can be applied for online quickly and easily and you do not need all of the extra documentation, signatures and long waits to receive an answer to a loan application. They offer a quick fix solution to short term credit needs.

Now, let's weigh that against the negative factors that you will need to think about. Payday loans offer a fast and useful service, but this also comes at a price. Providers generally charge applicants £20 for every £80 borrowed. Sometimes paying this interest works out a better deal (than having to pay bank or credit card charges, for example) but, if you find that you cannot afford to pay back the cash advance loan, you may find yourself paying an interest fee each month which could work out much worse for you in the long run.

Top tips

  • If used correctly, and paid off as soon as you get paid, payday loans are advantageous because you do not have extra payments and worries about a long-term debt.
  • Small payday loans can be a cheaper option than having to pay bank charges for bounced cheques or going over your overdraft limit, or credit card charges for missing your payments.

 

 

  • Payday loans are a quick fix and cannot be used to sort out a longer-term credit or debt problem.
  • If you cannot afford to pay back the loan, you may find yourself paying an interest fee each month which could work out more expensive in the long run.

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