Payday Loans
Payday loans are an alternative of cash financing, but only until your next paycheck, because then you have to start paying back the loan. These are unsecured types of loans; basically in order to get eligible you need to make a proof of stable income (minimum £ 750).

Being an unsecured loan, it means that:
  • You will have to pay very high interest rates
  • Expensive late payment fees
  • You won’t get eligible for a very high loan amount (somewhere between £100 and £1,000)
The simplest way to know if you qualify for a payday loan is to fill in an online application form. Very shortly, you will be notified whether your request has been accepted. Then, if you are accepted you will have to provide the banking details to the respective lending company (so that money can be transferred to that account). Plus, you will also need to give out information about your debit card details - so that the lender can make sure he will receive payment on your next paycheck.

Which are those instances when you should consider a payday loan as a solution?
  • Medical emergencies which need instant payments
  • Payment of an unexpected bill
  • Do not use a payday loan in order to pay off another loan, unless your other debt is more expensive
  • Any instances which require immediate access to cash
  • Keep in mind that payment is usually required to be made within 31 days (the majority of lenders require so).
  • You will find many instances where the lender requires that you pay back even 125% -150% for every £100 that you borrow. This means that if you borrow £500, with a 150% interest added, you need to pay back £500 + £750 = a total of £1,250.
  • The decision is yours, and the most important thing to keep in mind is that you must respect the repayment deadline, so that no other extra charges will be tailored to your loan.
Payday loans can be very expensive; however you need to make a thorough research in order to find lenders who will charge you no more than £50 to £80 per each £100 borrowed. Anything exceeding these amounts should be considered an over-expensive option.

If you will not keep up with the scheduled repayments, you will be charged extra which will further make your loan a very expensive venture.