Payday loans UK and what they can offer
Warning: Late repayment can cause you serious money problems
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Before anyone applies for a loan they have to take a few things into consideration. Firstly they have to be certain that the loan in question is definitely needed and secondly, they need to understand how much they realisically need to borrow. Thirdly, an applicant also need to know what type of loan they want to borrow. Many people may not even realise that there are short term loans which offer a one month repayment term, also know as payday loans UK, as well as instalment based loans. Once an amount is borrowed in this manner it can then be paid back in monthly instalments until fully settled. The lender chosen is another thing that the customer must think about in regards to the suitability of the loan, there are so many different lenders out there and each of them can offer different things to the customer in regards to their different products. All the above factors should to be considered before an application is made to make sure the correct product is chosen, ensuring the best loan available is selected by the applicant. In this article I am going to focus my attention on the Payday loans UK product and then explain what this specific product can offer.
If anyone ever needs money quickly or in the case of financial emergency then a payday loan can probably be of assistance. General these loans offer a very quick funding time once an application has been accepted. Most people apply for such products online and occasionally maybe over the phone. If declined then the customer should receive a quick decision with regards to this, allowing them the chance to move on and consider a different lender. If on the other hand an application is accepted then the customer can be paid into their selected bank account usually within just a short hours or at the latest the end of the same day. Most payday loan UK lenders do not charge for the same day funding service they offer. This product can be ideal when, for example, an unexpected bill arrives which was not budgeted for. At least by borrowing the money with a payday loan lender, the customer may be offered the required funds to make that required repayment in a timely manner.
With regards to sensible budgeting on the customer part, doing this for a payday loan product can sometimes be difficult for customers to manage. This is because a loan of this nature is repaid often as a one-off repayment; with any interest accrued being included. This payday loan way of borrowing could be deemed as expensive, which is why they are designed to only be used over a short term. When a loan of this nature is agreed, the full balance is then due for repayment typically on the customer’s next employment pay day, which is often within a thirty one day period. The interest charged for the product itself can vary depending on the loan company chosen, although it will likely be around £24.00 per £100 borrowed over 30 days. For example that would mean£496.00 would be repayable for a £400 loan. This loan repayment amount would need to be considered alongside any other financial commitments. Missing any loan repayments can have consequences for the customer involved.
Therefore these loan repayment amounts are not typically 'small' and as such really must be planned into a budget if thinking of taking a payday loan of this type. If this is not affordable, then it may be sensible to consider an instalment loan product such as those offered by True Blue Loans. Please read some of our other articles to find out more about instalment loans.