Payday Loan Lenders
If anyone is ever looking to borrow money from the financial market place, they will have a number of different things to consider before they can then even think about making any form of application. They must consider all of these each & every time they are in need of finance. First of all the borrower must decide that they definitely need to borrow the money in question and then, if so, only the amount required should then be taken out. Any amount obtained through any lender should always be affordable so the debt can be successfully repaid. The actual type of finance can then be considered and here there can be a number of different options. People, for example, can look to borrow either short term loans or longer term instalment loans. Credit cards can also be a way to borrow money from the financial market place and so it is not surprising that many people from all over the world have credit cards. In the article below I am going to focus on the finance that payday loan lenders can provide.
I have found that in recent years more and more people are turning to short term loans as a way to borrow money when it is needed. Payday loan lenders will specialise in this sort in lending. People can often turn to these loans when they need to borrow money quickly and for relatively small amounts for a short term financial fix. Never should payday loans or other short term loans be used as a long term borrowing solution. They are designed to help people obtain amounts of money that usually goes up to £500.00, although some lenders will lend more. They then allow people to then repay that debt back over a limited time frame. Any short term loan provided by payday loan lenders will usually have to be repaid back within twelve months as the maximum duration otherwise the loan are not really classed as a short term loan.
When people tend to think about short term loans they normally start to think about traditional 1 month payday loans as this type of borrowing. Now although these type of payday loans are not the only short term finance payday loan lenders provide, it is certainly one of the most common. A traditional 1 month payday loan is a loan taken out for amounts, again often up to £500.00. These are then due to be repaid within a single month. People borrow the loan and then have to repay the full debt just as soon as they are paid again from work. Hence the borrowing term ‘payday loan’ was historically used for these. It is true that in some cases a borrower can take out a payday loan for a matter of days and then they will be required to clear that debt in full. Repaying any loan in full can be difficult for people to manage especially if they do not have a high amount of regular disposable income. In more recent years there has been an increase in these lenders offering short term instalment loans. While these can cost more overall than the single instalment payday loan, as you have the money for longer, they do have lower monthly repayments which may make them more affordable.
Any Short term loans can be an expensive way to borrow money.
They should be used only when really needed and taken with care to ensure that repayments can, and will, be met on the due date(s).
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290% Maximum APR 1351%
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Author: Internal Marketing Department