Managing money isn’t always easy. Sometimes we start out each month with the best intentions and then simply overspend. Sometimes we forget about bills that might come in and find ourselves short of cash for life’s essentials. Sometimes we have some kind of extra expense that we couldn’t have anticipated like an essential car repair. End result? We can’t make our money stretch until the next payday.
But, just think how much better you would feel if you knew that you could access up to an additional £750 to help you out each month. Whether you needed to use this sum or not the simple fact of knowing that it was there would go some way to making you feel better, wouldn’t it? If you are aged 18, a UK citizen and in full-time employment then you will most likely already qualify for this help with a payday loan.
Payday loans are a relatively new and incredibly popular concept in the lending sector. These loans are offered as an alternative to people who simply need a small short-term injection of cash that they only want to borrow for a small period of time.
The name that they are given is based on the way that they work -- here, you borrow money for a few days or weeks until your next payday when you pay it back. Like any traditional loan you’ll also pay some interest on top but the convenience and speed of payday loans more than makes up for this.
Tom K, for example, wanted to put down a deposit on a second hand car. But, he knew he wouldn’t have any spare cash for a couple of weeks until he was next paid and the car loan he was already organising was far from being close to completion. The seller told him he would hold the car for him if he paid his deposit in 24 hours but Tom didn’t think he could get his bank to move that quickly. So, he went to his local payday loans company instead, organised the cash, paid his deposit and got the car. This gave Tom time to organise his full car loan in the traditional way and he paid off his payday loan on his next payday.
Payday loans companies work like any other lender you come across. The difference here is that these companies tend to work on lending smaller sums with immediate repayment at your next payday. So, you won’t tie yourself into a loan that could last for years and you can get your cash almost instantly.
Things to think about
It is your responsibility to make sure that you’ll have sufficient cash in your account come your next payday to pay back your loan. Your payday loan provider will talk you through the fee that you will pay for borrowing and how you will pay the loan back. Often this is simply just a question of giving your payday provider debit details and the date of your next pay check and they’ll do the rest. The amount of money that you can borrow here will usually be assessed in terms of your actual income so this shouldn’t be a problem.