Payday Loans: a Simple Way to Meet Life’s Unexpected Expenses
A payday loan is a short term loan which allows you to borrow a small amount of cash which you return on your next pay day.
The concept began in the US but is becoming increasingly popular throughout the world and especially in the UK as a simple solution to a short term financial problem such as an unexpected bill or an important and expensive event. For example, you may rely on a car to travel to work and find out that it needs emergency repairs or risk breaking down.
In cases like these, it’s not always possible to wait until pay day to meet necessary expenses in time and you may need a little extra cash to tide you over in the meantime. Where banks are generally unable (or unwilling) to lend the odd fifty quid here and there, payday loans can provide an easy bail-out.
So how does it work? The basic idea is quite simple – the applicant sets the amount they would like to borrow, then sets the repayment date (generally, the date their pay cheque is due). The loans provider will then either approve or refuse the request.
What sets payday loans apart from traditional credit and longer term loans is their speed. Loans providers are often able to provide an instant decision about whether or not to lend based on predetermined criteria, and payments can be made within 24 hours, depending on the borrower’s bank.
The amount you can borrow usually depends on how much you earn, although broadly speaking most loans range from £100 to £1,000. Applicants with very low earnings may be refused a loan entirely or able only to take on a small amount of debt at any one time.
Measures such as this are designed to safeguard the interests of both lender and the borrower –ensuring that loans will repaid on time and avoiding borrowers getting into more debt than they can manage.
The fees on payday loans in the UK are flat fees rather than interest rates, and vary according to the amount of money that is borrowed. Generally speaking, the bigger the loan, the higher the fee.
Besides setting a limit on the amount of the loan, there are also some basic requirements for the loan applicant, to determine that they will be able to pay back what they have borrowed. Applicants for a payday loan in the UK must be at least 18, be a current resident of the UK, have a bank account and be able to demonstrate a steady, verifiable source of income.
Phoenix Payroll Ltd - About Author:
Yorkshirecash.co.uk provides short term pay day loans to the UK, giving you a break when you need it most. We lend up to £400 in cash, which you pay back on your next pay day. We are licensed by the Office of Fair Trading and we won’t lend you money unless we truly believe you are capable of repaying it, so you can be sure you’re in safe hands. Find out more at http://www.yorkshirecash.co.uk/
Published by Samul Louis on June 15th 2012 | Loans
Published by Keron Breson on June 26th 2012 | Loans
Published by Honard Nork on June 25th 2012 | Loans
Published by Shaun Marsh on December 9th 2011 | Loans
Published by Jon Kohli on May 31st 2012 | Loans
Published by Denis Deny on June 30th 2012 | Loans
Published by Adam Klovis on June 28th 2012 | Loans
Published by Moneylaxmi on April 17th 2012 | Loans
Published by Alton Bells on May 18th 2012 | Loans
Published by Kenim Wids on December 1st 2011 | Loans
Published by Andrew Jeck on June 4th 2012 | Loans
Published by Elvin Jon on December 15th 2011 | Loans
Published by Malen Cheks on June 9th 2012 | Loans
Published by Addison Maddy on June 12th 2012 | Loans
Published by Georgia Bart on July 6th 2012 | Loans
Published by Ramsey Bert on July 19th 2012 | Loans
Published by Malvin Flec on June 22nd 2012 | Loans
Published by Abell Bush on December 10th 2011 | Loans
Published by Christian Phelps on February 21st 2012 | Loans
Published by Kenim Wids on March 19th 2012 | Loans