Small Loans

Payday Loans UK – All You Need To Know

When you find yourself in a bind for cash, there might not seem like a lot of options. However, you do have more choices than you might imagine. Payday loans are a great way to get some fast cash when you need it the most.

Here in the UK, payday loans work about the same as they do everywhere else. That's one of the many great things about these loans: they're simple and standard. No secrets or hidden fees if you find the right lender.

What Exactly Is A Payday Loan?

If you don't already know, a payday loan is just a short term loan. It's probably more accurate to refer to it is a short term cash advance. Unlike other loans that you'll repay over the period of months or years, a payday loan is usually repaid within a week or two. Some people take out payday loans for a period of up to one month, but that's only because it lines up with their work pay schedule.

As the name implies, the idea is that you'll repay the loan from your next pay cheque. You may even pay half of it back one week and then the final half next week if you are paid on a weekly basis. At any rate, it's not a loan you'll have following you around for the rest of your life. It's quick money and it requires a quick repayment. A few other names it goes by include “check loans”, “ pay cheque advance”, and “payroll loans”.

The following Guardian article takes a deeper look into Payday Loans. Please check it out by clicking on the following link – ‘What is a Payday Loan?’

When Is It A Good Idea?

Payroll advances aren't always the greatest idea. For example, if you aren't positive you can repay the loan in a timely fashion, then you might want to find a better alternative for quick cash (selling something, pawning something, or taking out a larger loan.) The reason being is that payday loans tend have higher interest rates than normal. The longer you go without repaying the loan the bigger it will grow. It can quickly get out of hand if you don't make the necessary payments.

If you have a steady job, have a bank account or proof of income, and know that you'll have the funds when needed, then there's nothing wrong with getting the cash ahead of time. There are plenty of times when it comes in handy.

Financial emergencies happen to the best of us. Sometimes we just need the money a few days before our pay cheques arrive. Sometimes unexpected medical bills drain our wallets or bills around the house need to get paid to avoid disconnection. These are times when a payday loan is really useful. A payday loan can help you make up for some poor budgeting decisions, but make sure you try to learn from your mistakes to avoid making them again in the future.

How To Find a Lender?

There are a lot of banks and financial institutions that offer payday loans here in the UK. You'll need to shop around, review their rates and customer service, and make a decision for yourself. Luckily, it's a very short-term loan so if you don't like the lender you can avoid working with them after a couple weeks have passed and your loan is repaid.

Payday Loans come under the spotlight further in the following video -