Managing your finances can be particularly stressful in the current economic downturn
. Many of us are struggling to meet the cost of living as the effects of decreases in pay are being compounded by a rise in the price of basic amenities like food, bills and rent. Add to this the increasingly stringent requirements for loan applications and mortgages from banks and lenders and it is easy to see why so many of us have to make sacrifices in order to cover essential costs. Even those who are particularly good at managing finances may find we are hit with an unexpected bill that we simply cannot pay. This is where a payday loan can help. If you are unfamiliar with how these loans work then here is a brief explanation.
What should a payday loan be used for?
These loans are designed to cover unexpected costs. They should not be used regularly to cover a deficit and nor should they be used to pay off any other loan. The loans are short term and therefore you should always ensure you will have sufficient funds to make the repayment in time.
How do payday loans differ from regular loans?
As mentioned payday loans are short term loans and therefore have a much higher APR to reflect the fact they will be paid back after no more than 1 month in most cases. Since the loans are designed for certain circumstances they are much smaller than typical bank loans. You can borrow as little as 50 and generally no more than 1000.
How do I apply for a payday loan?
Most applications can be completed online in a matter of minutes. An advisor will then contact you to complete your application and the process can usually be completed on the same day. In order to be eligible for a payday loan you must be in employment, a resident of the UK and over the age of 18.
What if I have poor credit history?
A payday loan will be granted in most cases as long as you have the income available to make the repayments in time. This means if you have a poor credit history or have been refused loans in the past you can use payday loans to build a good credit history once more.
How soon will my money arrive?
Payday loans are the ideal solution in a financial emergency because the application process is so quick to complete. You can often arrange for your money to be paid directly into your account that day.
