subject: Is A Quick Payday Loan A Suitable Solution For The Cash-strapped? [print this page] A quick payday loan can help provide instant money relief when you find yourself in a difficult situation and in need of money. Like a regular loan, there are a number of processes you need to follow before you can get your loan.
However, unlike regular loans, there is a major difference in the time it takes from your application for a loan being submitted to the point that the money is received. Traditional loan lenders such as banks routinely take weeks, and even months, to provide an answer on if your application has been accepted as they require a host of documents.
A quick payday loan lender can usually give you an instant response on your application and if you are accepted for a quick payday loan, the money is released within minutes. They are a great way to bridge the gap until your next payday as more and more people are finding that their wages are unable to cover them for any unexpected emergencies that may occur during the month.
No matter how hard we budget, with the recession increasing the cost of living and lowering the average persons wage, any unexpected cost during the month will put a strain on your finances if you do not have any savings. A quick payday loan can help you to sort your emergency, and you repay the money on your next payday. Whilst it will leave you less money for the month after, it does allow you more time to prepare your budget and make any necessary cutbacks.
Are there any alternatives to a quick payday loan?
By now, you are probably aware that a quick payday loan is not actually the cheapest form of credit on the market by quite a bit. Whereas a personal loan can have an APR of 12%, the APR of a payday loan can be go up to 4000% with lenders such as Wonga. At Cashub.co.uk for example you can fine representative APR is 1,734% click here for more details.
Whilst an APR is a good indicator of what interest you should expect to pay on a loan over a long period of time, it doesn't give as clear a picture on a short-term loan such as a quick payday loan. As an example, if you were to borrow a 200 loan over 28 days with an APR of 1,734%, you would repay 250, a lot less than the APR would make it seem.
Therefore there are plenty of cheaper alternatives to payday loans if you want to borrow the money over a long period of time. Credit cards, personal loans, even home equity loans are all a better choice of lending because they work out cheaper. However, if you need money quickly and only for a short period of time, there is no faster solution than a payday loan.
by: Jordan Reeves
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