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A payday loan is a convenient way to borrow money if you run into money troubles between pay days. For example, if your car breaks down and you have to pay for repairs or if your boiler stops working and you need to pay to mend it. These are costs which you would not have budgeted for so you may not have the money to fix the problem. For emergencies like this a payday loan can be great as you can get the money paid into your account almost immediately and arrange to pay the loan off on your next pay day.
You would have probably picked up on stories about payday loans in the news or through conversations with friends or colleagues as they can often be quite a controversial subject. This is due to some companies charging sky high interest and people taking out these loans when they cannot afford to pay them back. This then results in people paying high rates of interest as payday loan interest is worked out with the assumption that it will be paid back in less than 28 days.
Although the interest on payday loans is high, this is because it is displayed as annual interest. However, you are usually not advised to take out a payday loan for longer than 28 days meaning that the interest will never reach those dizzy heights!
Payday loans are very easy to apply for, which is very useful in an emergency, so just ensure that thought has gone into making the decision to apply. If you do not think that you will be able to pay the borrowed amount back, with interest and within the time that you have, do not take the loan. Also, keep in mind that payday loans are not an answer to debt but are a helpful short-term solution which could help you out with unexpected money shortages!
If you need to borrow a small amount of money, but require longer than your next pay day to pay it back, you could apply for a 12 month loan through Lightning Loans. Lightning Loans will lend between £600 and £2000 over a 12 month period at a competitive interest rate. All you need to do is complete a quick online form and the money will paid into your account within minutes of being approved. You can visit Lightning Loans here: https://www.lightningloans.co.uk/
By Sasha Davison
20th January 2014
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