Payday Loans
Payday loans are small short term emergency loans intended to tide you over from one pay day to another (hence the name payday loans) and are not meant as a long term financial solution.
Payday loans are very controversial and there are many people against them, mainly because of their extremely high interested rates, payday loans are normally lent over a one month period and tend to have interest rates well over 1,500% APR (some are over 4,000%.
A payday loan can also sometimes be referred to as a cash advance, although this term is also used when you withdraw cash from your credit card.
Payday loan companies are fighting against their bad press by saying that they charges are inline with their costs, statistics show a high rate of these loans being defaulted on and a large percentage of the payday loan companies turnover is spent on these defaults.
In an ideal world you would never need a payday loan, or any loan at all. Are you interested in getting rid of all your debts and living debt free?
If you still need a short term loan, have you considered the alternatives? although all of these also carry their own downsides!
- Short term loan from a friend
- Credit Cards
- Bank Overdraft
If you decided to apply for a payday loan you will typically need to make sure you:
- Have a valid bank account (that can receive direct debits)
- Are 18 years of age or over
- Are employed and receive a regular wage / salary
- Are a resident of the United Kingdom
More information on payday loans
