Payday loans which are also referred to as short term loans are a quick fix to money problems
. You will probably have seen them advertised in newspapers on the television and bill boards. They are quite simple to understand compared to the other loans available. You usually just fill out an online form with basic information such as your monthly salary, proof of that salary, proof of age as you must be over 18 and also your bank account details. You state when you can pay this back (normally within 4 weeks) and this is normally in one lump sum including the interest. Once your loan has been approved you will get the money transfer to your bank account.
So what's the catch? Well the catch associated with these types of loans is that the rate of interest is high. Typically the interest charged can range from 10 to 25%. So if you were to borrow 100 over a period of 10 days the repayment amount would be 125. The reason the interest rates are so high is because most of these lenders don't do any form of credit check and therefore must be able to absorb a high level of non-payments from borrowers. If you don't pay them back within the given time you could find yourself in a bit of trouble as to extend the period to time to pay it back will cost you even more. Payday loans are expensive to take out but when you need money fast they maybe your only option. They are worth it if you are able to repay the loan in the time stated.
Payday loans are great for times when you face emergency expenses and find yourself short of cash. This could be due to an unexpected high utility bill, your car failing its MOT and needing some work done, or some other emergency where you found yourself needing cash fast.
Finding a lender couldn't be simpler these days with the internet. Most lenders will have a website so all you have to do is search and compare. Remember to make sure you can pay the loan back in the given time because if you don't you could find yourself in far worse debt than you wanted.