Some people wonder why others use payday loans. They have had a bad press, with many people complaining about how expensive they are and tales of people who got into a lot of debt with them. However, the success stories do not make interesting reading and so are not widely known.
If you do not pay back any loan on time, there will be additional charges added on. If you do not pay back a payday loan, these charges can be high and they can add up quickly and this is why people find them difficult. This is why it is really important to make sure that you are confident that you will be able to make the repayments before you take out the loan. This is the first thing that you should consider before you apply.
Many people look into getting an instalment loan as a payday loan alternative, and there are many benefits to this type of loan. Hundreds of people take advantage of these loans every year, and while they work differently from payday loans, there are still lots of things which are the same.
Choose your preferred length of time
Payday loans are intended as short-term loans, which is why they are usually paid back after no longer than a month and on the next payday. However, instalment loans can be borrowed for much longer, which makes them a better alternative for people who want to start a business, buy a car or do something over the long term. From a month to ten years, you can choose exactly how much you want to borrow and over what length of time you wish to pay it back.
Short term loans get the job done – hands down! If you’re in a sticky financial situation and you really need money quickly, this is the best time to make sure that you get your loans covered. The more that you worry about the bigger picture, the more trouble that you’re going to have in the long run. The more time that goes by from your problem to when you solve it, the more likely the problem is to get worse. if you need to get car repairs done and you aren’t going to get your pay-cheque for another two weeks, you’re going to spend a lot more money trying to take the taxicabs to work than if you were to just get the repairs that you need.
Another point that you really want to keep in mind is that you have to think about where your short term loan comes from. Unfortunately, not every online provider of these loans is going to focus on getting you the money quickly. They may let your application just “hang”, tying it up in needless delays that keep you from the money that you need. It goes without saying that this is the last thing that you really need. It’s better to make sure that you are going with a solid provider for these loans. That’s why Emergency Loans 24/7 has been around for so long. It’s a site that gives you exactly what you need to know about these loans, leaving you with plenty of time to apply, get your money, and move on with your life.
Wouldn’t that be a refreshing change to the way that you’ve probably been treated by lenders in the past? Instead of being dismissed as not being very important, you will have a chance to become absolutely important, in every single way imaginable. After all, lenders in this financial space know that you must have some deep financial problems if you’re going to be reaching out to them, right? Absolutely.
Be sure that you are always looking around for the best place to get your loan, and then repay that loan as soon as possible. These loans are designed to be used for any purpose that you see fit, so make sure that you respect them for being the powerful tools that they are!
People are turning to short term loans more and more to solve their temporary financial setbacks but more and more attention is being placed upon the responsibility of payday lenders and of course the borrowers.
Some people seem to see short term loans as a way to solve their debt problems when in fact this is far from the case. Many of these people already find themselves stuck with a bad credit rating because of these debts.
While you can often get a short term loan with a bad credit rating it is extremely important that you stop and ask yourself “do I really need this?” Often if you answer honestly, the answer is no. If the answer is yes it could be that applying for a loan is the right choice for you assuming that you can comfortably afford to make the repayment on time. Even if you can afford to pay it back, would it not be better to seek a cheaper means of borrowing? If you can borrow from friends or family it could be a lot cheaper in the long run. It is often less embarrassing to get an online loan rather than turn to those close to us though.
If you are visiting websites such as www.shorttermloans60.co.uk there is a strong possibility that you are looking at applying for a short term loan. Your reasons could be that you have had some sort of financial crisis, or it could be that you want to get a payday loan so that you can go out with your friends for a night out or to see your favourite band.
There are some things that you should seriously consider before getting a payday loan. The first is to question whether you really need the money enough to pay the interest charges. The average interest rate is 1737% APR. In real terms this equates to around £25 per every £100 borrowed on average. If you are borrowing money for a non-urgent reason it could be worth skipping the loan on this occasion. If you stop for even 1 month, you could do what you were planning to the month after without needing to borrow the money to do so, without paying the fees to do so.
If you need to borrow the money to cover a financial emergency, which is what the main use for short term loans is. Consider whether this is a one off. If this is a one off emergency and you can afford to pay the interest a short term loan could really help you out. The benefits of an instant loan is that there is no waiting to make appointments to apply and this can be a huge factor on people’s decision to apply.
The Cooperative bank has been forced to put lending on hold to small businesses that submit new applications as part of measures to try to repair some of the void left in its capital after its credit rating was pretty much destroyed overnight. The bank’s credit rating was downgraded by 5 steps despite protests by it that it was perfectly fine.
The bank has had to put any new loan applications on hold for small businesses which looks bad when this is the exact opposite of what is being encouraged by the government in a bid to stimulate the economy, although it has said existing applications will still be processed while it is in talks with the Prudential Regulation Authority about how to bolster the banks shortfall in capital.
It is believed that one possible solution would be for the bank to see the bank separate its good and bad assets, to hopefully improve the standing of the bank sans toxic assets. The discussions with the PRA could last between four and six weeks.
The UK spending public appear to have become more thrifty, continuing to take on debt with loans and credit cards but paying them off just as fast. This is a big jump from the previous situation, which saw Britons taking on more and more debt without enough being paid back.
It’s a sign that, as a nation, we are becoming more financially aware. It means that there is less debt hanging over our heads and we have taken better control of our finances.
However, it’s not just new debt that is being paid down. Households are paying down mortgages and existing loans, meaning that they have more breathing room for any future financial difficulties.
The chief executive of financiers SPF Private Clients, Mark Harris, claims that “lack of consumer confidence, caused by weak economic growth in the UK and the ongoing eurozone crisis, mean most homeowners feel more comfortable paying down their debt than increasing their liabilities.
The chief executive of the Secure Bank Trust, Paul Lynam, has complained that 90% of the claims that his bank receives aren’t held up the the Financial Services Authority (FSA), and says that this draws away valuable time and resources from the bank, ultimately resulting in a loss of money that could be used for lending instead.
There have been calls recently for the claims companies to pay the £850 fee for launching a claim if the claim fails, and Mr Lynam has added his voice to them. Speaking about the PPI claims, he says that “it is costing us in excess of £100,000 a month to deal with these claims companies for almost no customer benefit whatsoever. I estimate if we had no claims management company-related costs over this past year, we would have been able to lend £10 million, or 20 per cent more than we have been able to.”
Lenders in the UK are trying to capture a larger and larger chunk of the profitable personal loan market at the moment, attempting to draw customers in with lower and lower rates of interest. The result is that two providers are now offering rates of just 5.4% on some of the loans they offer, which is certainly appealing to anybody looking to get their hands on some cash for a holiday, car, redecorating or anything else.
However, the banks and building societies are still unable to compete with the emergence of social, or peer-to-peer, lending, which is drawing in ever more of the market. Although the vast majority of lending is still done through traditional means, there is a lot of scope for this more personal finance offering to grow.
Whilst lots of attention is being given to the increased prevalence of payday loans at the moment, with more and more people looking for money to support them between pay-cheques, some people think they’ve found a way around the issue by dipping into the overdraft on their bank account for the small amount of time it takes for the next lump of cash to be given to them.
However, in the vast majority of cases, these people will find themselves paying far greater fees than they would have with a short term loan and are likely to discover the additional charges only a month or two after they have made use of the overdraft.
Whilst it may be tempting to use a few extra pounds, most bank accounts have huge charges that they will levy on people who use an overdraft without warning. Some of them will even charge administration fees if you even try and go into your overdraft, without actually letting you have the money in the first place.