Many of you would have heard about payday loans and it's often use for getting quick cash but very few people know exactly how they work and what they should be used for. You might be curious to know if *payday loans are right for your situation so these simple points may answer your question.
A lot of people tend to use them for emergency / necessary expenses, they are short term loans that give you money when you need it to pay for bills to avoid late payments. These loans can be dangerous if used for the wrong reason or you cannot afford to pay back, however if used for the right reasons there are benefits that they can offer.
1. Fast - filling out an application and receiving the loan only takes a few minutes.
2. Flexible - these loans are designed for short term which means you can pay back just as easily when you get paid.
3. Amount - your income limits the amount you can borrow at any given time which can make it easier to pay back when they are due. This is designed to prevent the cycle of debt.
4. Easy to apply and qualify - they are very easy to apply but there are limitations such as having sufficient income and you have never defaulted on another payday loan in the past.
5. Invaluable for emergencies - generally you can obtain your loan in less than an hour so you can get the money quickly for what ever emergency you need it for.
Before taking out one of these loans, think carefully about how you are going to pay it back. If you are short of money this month, what makes you think you will have the money plus the interest the next month? Could it be you are cutting back spending considerably or you have extra income coming in else where. If you decide to get a payday loan always check that the lender is regulated by the FCA Financial Conduct Authority as all lenders must be regulated by the FCA.
Don't forget you can change your mind and withdraw from the agreement at any time within the first 14 days and don't feel embarrassed to do so. If you do change your mind all you need to do is pay the interest on the credit you have used, any additional charges will be refunded to you.