In the UK payday loans have been a popular form of borrowing for many individuals
and families who are finding it difficult to manage on a tight budget. Many families find it difficult as it gets nearer to the end of the month and are waiting for their next pay day to come around.
Living frugally and on a tight budget means that those unexpected expenses can throw you off kilter. It happens to us all but if you have no savings to cover these unexpected cost then it means that you often have to borrow the money and borrow it quickly.
Some payday loan facts
It is often young families who find themselves in this situation most often with both men and women between the ages of 22 and 35 who are most likely to seek a payday loan. It is often for relatively small expenses such as unexpected bills or for special occasions or even to have a bit of spending money for your holiday.
The average amount borrowed is two hundred pounds, people are often sensible and only borrow the amount that they need. They could borrow a lot more with the average monthly net income being around twelve hundred pounds. About three quarters of this income is spent on the basics, these are the regular monthly expenses we all have to meet every month.
Solving your short term credit problems
Debit card payday loans are often the only method of solving their short term financial needs in times of crisis. This is especially so if you have a poor credit history that has previously prevented you from getting credit. With a low credit score it can be difficult or almost impossible to get a high street cash loan or even expect to get credit in many of the high street stores. This is the case with any establishment that requires you to be credit checked, payday loan companies are one of the few types of business that do not require credit checks to be performed in order to determine your credit worthiness.
It is easier to obtain credit as many lenders can now accept more different types of circumstances. One example of this is the need for you to have a debit card associated with your bank account to be able to qualify for a loan. These days other alternatives can be arranged by your lender such as setting up a direct debit.