If chosen correctly a short-term payday loan can be a massive benefit to an individual in need of a fix over a small number of days or weeks. There are horror stories about payday loans putting people in terrible financial positions, hitting them hard with sky-high interest rates and fines for missed or late payments, but not every provider is the same. There are a number of advantages to taking out a payday loan, if you take the time to investigate a variety of companies and choose one that offers a real chance for you to get some breathing space from your financial worries, and not place you in further trouble.
A transparent and simple to understand short-term, payday loan provides assistance in the form of loans usually in the region of £100 up to £1000. Those payday loan providers that offer the most effective route for an individual in need of financial assistance are those that can give an answer one way or the other in a fast turnaround of time, preferably through an online application process.
Always have a full understanding of your own financial situation. Not only how much money you need right now to fill a gap, whether this is for an emergency situation or for regular bills that have come at the wrong time for your personal circumstance, but also how much money you’ll have coming in on your next payday. If you can’t guarantee when you’ll next have the money to make a repayment on a payday loan, or exactly how much you’ll have coming in then it might not be the best time to apply for a loan.
The dangers of choosing the wrong payday loan for your circumstances can be seen in the recent story of a pub manager who stole £3,220 from takings at his place of work in order to make repayments on a payday loan he had taken out. Thomas James, 41, from Thorney, admitted to stealing the amount to pay off not only his payday loans but also to put towards his general living expenses. It is a sad indictment of how many payday loans work in the UK, putting immense strain on individuals with high interest rates and restrictive repayment schedules.
Of course, not all payday loan providers are cut from the same cloth. There are companies that are completely upfront and honest about the interest applicable to a loan, and encourage you to comprehensively look at your finances before deciding whether or not to go through with a loan. Always investigate in order to ensure a commitment to an honest payday loan provider.