Payday Loans
Is a payday loan right for me?
As long as you have a regular income and an active bank
account with a debit card, a payday loan could be suitable
for you.
Sensible financial reasons for taking out a loan of
this kind include to avoid defaulting on your current
account or mortgage, and to pay off more pressing debts,
perhaps with an even higher interest rate.
The cost of going overdrawn without permission can mount up,
so a payday loan could prove a cheaper alternative in this
situation.
As most payday loans are paid into your bank account immediately,
or the next day at the latest, they are also popular with those
needing an instant cash injection – whether that is to repair the
boiler, pay for emergency dental treatment or help a family member
in need of support.
The loans are also suitable for tenants as, unlike with
most loans, it is irrelevant whether you are a homeowner or not.
People with flawed credit ratings are also likely
to be accepted for payday loans.
Some payday loans firms will, however, require you to write
a post-dated cheque which will be cashed by the lender as
soon as your salary is paid into your bank account.
Payday loans also come with a health warning:
because the interest rates are so high, they should
only be viewed as a short-term borrowing facility
and not a solution to an ongoing financial problem
Payday loans also come with a health warning: because the
interest rates are so high, they should only be viewed as a
short-term borrowing facility and not a solution to an ongoing
financial problem. If you are struggling financially, a payday
loan could exacerbate, rather than ease your problem because the
amount you owe will spiral quickly if you do not repay the debt
in full within the agreed term.
