What is a Payday Loan – Payday Loans are short term credit agreements that are taken on for short periods of time.
What is a Payday Loan
A payday loan is a short term funding option that you can use until your next payday. Essentially it is a small cash advance that you use for a short period of time. They are called “payday loans” due to the fact you borrow the money until you are next paid and at that point the debt is recovered from the company you used in the original loan agreement.
Within the UK there have been a rapid rise of payday lenders with more and more people becoming reliant on payday loans as a form of credit. This has caused some upset from different quarters as there have been an influx of hackers who have been manipulating the search results in the last 6 months to try to cash in on this highly competitive keyword. As the battles continue to go on in cyberspace we have decided to put this site together to provide people with useful knowledge and information about payday loans.
So, can a payday loan be of any use to anyone? The simple answer is that yes, they can be useful but must always be treated with caution. Caution must be adhered to, as with all forms of finance they are to be handled carefully. Think long and hard before committing to payday loans with any company. Make a sound financial plan and think about what your current financial commitments are, including:
What current financial outgoings do you have and are the likely to increase? – Can you afford to loan the money after you payments have gone out. Sit down with a simple spreadsheet and enter your income and outgoings. If have 30% of your total income left, after all your outgoings have been paid for, including the payday loan and you should be ok.
Have you missed payments on any other loan agreements before? – If you have defaulted on payments in the past this may not stop you from getting a loan. The question you need to ask yourself however is should you really be entering into a payday loan agreement?
Do you really need to borrow money? – The temptation to borrow money is always high, particularly in times of crisis. But think about it, would the cris really be averted if you entered into a payday debt and you had many additional payments to make. The temptation to lend is high – so, do not let your emotion get in the way and think about what you need to money for.