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Payday Loan Hints and Tips


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575


Summary:
If you are struggling for money before you reach the end of the month, then you should look at payday loans
as an option to help ease your short-term financial pressures. However, you should make sure that you only
borrow as much as you can afford to pay back next month whilst still having enough to make it to the next
payday.



Keywords:
Personal loans,uk,secured,loans,debt,consolidation,compare,apr



Article Body:
If you are a week or two away from payday and need cash urgently, then a payday loan might be the answer.
Payday loans are short-term loans that give you the money you need until you get, at which time you have to
pay the money back. Payday loans are also known as cash advance loans or cheque loans. If you are in need
of cash before payday, then this guide can help you to decide if payday loans are right for you.


How much can I borrow?


The amount of money that you can borrow is usually quite low, because the loan is for the short term and
you can get it quickly. Somewhere between £50 and £400 is the usual amount. The way you get a loan is
that you write a personal cheque for a certain amount of money plus the fees, and then the lender will give
you that money in cash. The lender will hold the check until your next payday, and then if your situation is
better the lender will cash it in. If you still cannot pay, you can pay more fees to keep the cheque held for a
few more weeks.


What are the advantages and disadvantages?


The advantages of payday loans is that you can get hold of urgently needed money very quickly, which can
get you out of a tight financial situation. The loans are also useful for people who have poor credit and so
find it hard to get other types of loans or credit cards. The loans are good if you know you can pay back the
amount in a few weeks when you get paid.


The biggest disadvantage of payday loans is that the fees are very high. Normally you will have to pay
around 10% or more of the cost of what you borrow. So borrowing £100 is going to cost you £110, or even
more if you keep extending the borrowing time. You can also end up in a vicious cycle where each month
you run out of money too early because of having to pay the original loan back. Payday loans should be used
as a last option, or if you know that this month is an exceptional month and you will be back on track
afterwards.


What are the alternatives?


There are a number of alternatives to payday loans, especially if you have good credit. You could use a
credit card to pay for the things you need and then pay this amount off at the next payday. Although credit
cards have fairly high interest rates, if you know you need more than a few weeks to pay back the amount
then this interest is cheaper than a payday loan. If you need more long-term help with debts or lack of
money, then a personal loan might be a better option, as long as you can afford the repayments. If you have
poor credit, then a payday loan is often the best option because there is no credit check. The only
information that needs to be verified is your current employer.


If you are struggling for money before you reach the end of the month, then you should look at payday loans
as an option to help ease your short-term financial pressures. However, you should make sure that you only
borrow as much as you can afford to pay back next month whilst still having enough to make it to the next
payday.




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