Payday Loans

Payday Loans: Emergency Friend or Expensive Foe?

Imagine the scenario; you’ve worked like a dog all month and its finally payday – you’ve paid the bills, put fuel in the car, and have just enough cash spare to treat yourself to that great night out you’ve been looking forward to. That of course, is when sods law kicks in – maybe the washing machine packs up or the car unexpectedly fails its MOT. When emergencies like this happen, there’s often got no alternative – you just have to find cash from somewhere – and find it quick.

Plumbers Bum

Payday loans are suited to just this kind of emergency. They’re a great way to help you overcome those unexpected financial hiccups that threaten to sabotage your perfectly planned cash-flow. The beauty is that you can sort payday loans online, and have the cash in your bank account in under an hour – speed and convenience, no bank or credit union come close to. However, payday loans do have their limitations – they’re only meant as a short term financial fix – when you need to borrow for a month or less, and are usually limited to a maximum of £300 to £500 for first time customers. They’re also one of the most expensive forms of borrowing.

You can easily find online payday lenders by Googling “payday loans”, or if you fancy a walk, scattered along the high-street between the estate agents and the bookies. However, if you want to find a payday loan with the least amount of effort, you can use one of the online payday loan matching services offered by brokers. Fill out a single online application form and they will search the best payday lenders for you in one go. It should cost nothing to use the service and will save you the time and hassle of applying to multiple lenders, should you be unsuccessful first time round.

Speedy Cash Payday Loans

Do remember however, like any form of lending, taking out a payday loan shouldn’t be taken lightly. Stop and ask yourself the following before applying:

  • Can I borrow the cash you need from close friends or family or another cheaper source?
  • Can I afford to repay the loan back in full on your pay day? If not you might be better off looking at an instalment loan instead.

If you can’t find the cash you need elsewhere (put your pride to one side on this one), but think there’s even a remote possibility that you’ll be unable to make the repayment on time, try to think of a work round or do without – even if doing will inflict some degree of inconvenience for a short while. Not fulfilling your part of the bargain, such as missing your payment date, can be expensive, will undoubtedly cause you grief, and could have a negative impact on your credit record.

Whether you are pro, anti, or impartial about these instant payday loans, it’s good to know that there is a least a solution out there if you really need it – just remember to borrow responsibly.