Payday loan lenders and what these can offer
Warning: Late repayment can cause you serious money problems
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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%
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Author: Internal Marketing Department
There are a large amount of different loans people can take out in the market place when a loan is needed of some kind. A customer should realise here that it is their responsibility to assess all financial avenues and then see what they wish to do. It is never wise to rush into applying for loans and just submit an application through the first lender that comes along as it could lead to a poor financial product being taken out. A customer should at first take their time to establish a few things such as do they need the loan or is there anyone else who could lend the money? How much realistically are they looking to borrow? What kind of loan do they need? Is it a particular type of finance? Is it a short term or a long term financial agreement? So is it a short term loan or an instalment loan over a set time period? They will also have to look at the different lenders as there are quite a few and they each can offer different products and some will benefit their potential consumers more than others. Once this is taken into consideration and discussed then the application can be made.
One the types of loans offered in the market place would be the short term loan, sometimes known as the "quick cash payday loan". People may ask what is a traditional payday loan? A payday loan is a small loan that is borrowed by a consumer with a typically high interest rate and is one that then has to be repaid on their next payday normally a single monthly period. This may seem useful if people need finance and cash quickly but they are expensive and at times when the payments become due they are for high amounts and cannot always be realistically affordable. A solid example of this would be if a customer was to borrow say £400.00 to tide them over until their next payment date, the interest on this loan would normally be around £24.00 per hundred borrowed meaning when the full balance is due on their next payday a £496.00 payment is required. This is a large amount of money to be taken in a single transaction on a payday and if this is not affordable then that person’s options are then limited and this could default on the agreement. Failing to make any loan repayments as agreed with a lender will have severe negative consequence for that person.
Another short term loan that is becoming more popular in the market is the instalment loan. Normally when we think about this loan we immediate think about a bank or building society loaning a high amount to a customer to be repaid over a prolonged period of time and normally done over many years however this now is definitely not the case.
People can take out instalment loans from direct payday loan lenders to cover short term expense and then repay over a number of months instead of years. This can be a perfect borrowing solutions if a customer needs money quickly and then repays the money taken out over just a few months. People here can look to borrow possibly up to £1,000 and then repay it back over a year as a maximum and just like a payday loan they can borrow the money relatively quickly and will often receive no fees for same day borrowing and funding. A customer must however be aware that the longer they take out an instalment loan for, the more repayments that are made meaning they pay back more in total.
Before any loan is taken out a customer as mentioned earlier must explore their different options of what they have available. The best way to action this would be to use a comparison site such as Go compare or Compare the market as it is on these that they can review the different lenders that are available and that they can compare loans interest rates and the best repayment terms that can be offered for them at this time. It is here where a customer can then feel positive about their loan taken and they can see that is the best loan possible for their financial situation.