We've all been there. Too much month left at the end of the cash. 2 weeks till your next pay day, and nothing left in the bank to see you through till then. It happens to most people at some time or another, and occasionally no kind of planning or careful budgeting can prevent you from running short. All it needs is for something to mess up with the car, a surprising vet bill or household expense and suddenly you find your bank balance taking a nosedive. Sound familiar?
With the price of living getting steeper all the time, not everyone is in a position to afford the indulgence of saving money for circumstances like this. The option of asking the bank for help through a loan or overdraft may not always be available - or perhaps the most sensible way to go - if you simply need a small amount of money to tide you over until you next get paid, so a pay day loan could provide the best solution.
Pay day loans are designed in particular to suit folk who want a short term loan which they'll be able to pay back quickly. There are lots of pay-day loan lenders out there, and it is crucial to do your analysis and ensure you feel comfy before making the decision about which company to borrow money from. Here are some things to think about when you're looking for a pay-day loan lender:
Does the lender have a great rep? Do they look genuine and are they able to offer answers to all your questions? Don't commit till you are feeling confident that you're entering into a contract with an ethical, bonafide lender.
Do they have a consumer credit license? So as to lend cash in England, all banks must hold a consumer credit license. Responsible banks must adhere to a set code of behavior according to the terms of their license. Avoid incurring debts from banks who do not have the shopper credit license as they may be trading unlawfully.
Are you clear on what you'll be paying and when? A responsible bank should supply you with a clear schedule of the repayments of any cash you borrow, including the dates, amounts and how it should be paid.
How long will you have to pay back the loan?This varies from bank to bank. Some loans would have to be repaid in 30 days, others might be longer. Ensure you will have the money to pay the loan back by that date.
How much is the interest (APR) on the loan on top of the original amount? Make sure you find out what the APR figure is on the loan. Since pay-day loans are built to be repaid swiftly you should be conscious of what you'll pay in charges. Compare the rates with 1 or 2 different banks to make certain you're getting a good deal. And don't make any commitments until you are certain you will be ready to afford the payments.
What will happen if you can't afford the repayments? Find out from the lender whether there would be any extra charges if a payment is missed.
Is the company a license moneylender or a broker?Some companies which present themselves as a bank are basically a broker, and it may work out better for you to borrow directly from the bank. If you do decide to go with a broker, do you know whether they're going to charge a fee?
If the bank can transfer the money extremely fast after the loan is approved, will they charge you more for this service?
There are numerous differing types of loans available, so be sure you do the research and this will help you secure the hottest deal.
With the price of living getting steeper all the time, not everyone is in a position to afford the indulgence of saving money for circumstances like this. The option of asking the bank for help through a loan or overdraft may not always be available - or perhaps the most sensible way to go - if you simply need a small amount of money to tide you over until you next get paid, so a pay day loan could provide the best solution.
Pay day loans are designed in particular to suit folk who want a short term loan which they'll be able to pay back quickly. There are lots of pay-day loan lenders out there, and it is crucial to do your analysis and ensure you feel comfy before making the decision about which company to borrow money from. Here are some things to think about when you're looking for a pay-day loan lender:
Does the lender have a great rep? Do they look genuine and are they able to offer answers to all your questions? Don't commit till you are feeling confident that you're entering into a contract with an ethical, bonafide lender.
Do they have a consumer credit license? So as to lend cash in England, all banks must hold a consumer credit license. Responsible banks must adhere to a set code of behavior according to the terms of their license. Avoid incurring debts from banks who do not have the shopper credit license as they may be trading unlawfully.
Are you clear on what you'll be paying and when? A responsible bank should supply you with a clear schedule of the repayments of any cash you borrow, including the dates, amounts and how it should be paid.
How long will you have to pay back the loan?This varies from bank to bank. Some loans would have to be repaid in 30 days, others might be longer. Ensure you will have the money to pay the loan back by that date.
How much is the interest (APR) on the loan on top of the original amount? Make sure you find out what the APR figure is on the loan. Since pay-day loans are built to be repaid swiftly you should be conscious of what you'll pay in charges. Compare the rates with 1 or 2 different banks to make certain you're getting a good deal. And don't make any commitments until you are certain you will be ready to afford the payments.
What will happen if you can't afford the repayments? Find out from the lender whether there would be any extra charges if a payment is missed.
Is the company a license moneylender or a broker?Some companies which present themselves as a bank are basically a broker, and it may work out better for you to borrow directly from the bank. If you do decide to go with a broker, do you know whether they're going to charge a fee?
If the bank can transfer the money extremely fast after the loan is approved, will they charge you more for this service?
There are numerous differing types of loans available, so be sure you do the research and this will help you secure the hottest deal.
About the Author:
De Dhar is a business writer concentrating on cash loan and credit products and has written prominent articles on the finance industry. She has done her gurus in Business Administration and is at present assisting as a fast loans specialist.
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