How To Use Pay Day Loans Responsibly
In some way all loans are the same. You ask to borrow money from a lender, you prove to them that you can pay it back and then you get your money and pay it back according to the schedule that you are given. But, loans only work for borrowers if you commit to using them responsibly and make your repayments as you should.
So, if you are considering using a pay day loan to give you some extra cash to help you out this month then you need to be committed to they way that this kind of loan works. For a start you need to be:
- Over 18 years of age
- A resident of the UK
- In full time employment
- The holder of a valid bank account with a debit card facility
- Able to provide two telephone numbers for identity verification purposes
It is also important to understand how payday loans work before you can use them responsibly. So, the process will usually involve:
- Making an application for a pay day loan
- Getting your application approved (this can take just minutes if you apply online)
- Having the cash that you want to borrow paid into your bank account (usually same day)
- Paying back your loan plus the flat fee that you are charged for borrowing when your next pay day comes along
These kinds of cash advance loans can give you some breathing space in those months when money is tight. Sometimes we just can’t factor in a bill or the need to buy something like a home appliance out of the blue and with no notice. Sometimes, of course, we simply overspend and want some cash to tide us over until we next get paid!
But, there are times when and ways in which you shouldn’t use a pay day loan as a solution to your lending needs. This kind of financing is not, for example, designed to be used for:
- Long term lending -- a pay day loan should be paid off at the due date of your next salary payment day. You can ‘roll over’ a payment due date to the following month but this will increase your costs and should not be something you do too regularly.
- Regular cash access -- this kind of loan is meant for occasional use and shouldn’t be used as a source of additional income every month.
- When you need to borrow a lot of money -- most payday loans will let you borrow up to £750 depending on your income.
The benefits of pay day loans are many and they suit the needs of most people really well. Being income based these kinds of same day cash advances don’t come with many of the traditional application pre-requisites of standard loans. So, for example, you don’t need to own your home or to have a perfect credit history to successfully apply for a pay day loan. And, they can be issued same day -- there are few quicker lending solutions to call on in the sector today.
But, as with any loan you should take responsibility for making sure that you can repay what you borrow and that you do your best to stick to your given repayment schedule. This will make sure that you do actually benefit from the convenience of pay day loans and the simple flat fee charges that they give you.