You probably think it is more difficult than ever before to get consumer finance thanks to the global recession meaning that banks and building societies etc are more reluctant to lend money. You would be correct to an extent, however where one door closes, another opens and this is indeed the case with consumer credit. In 2006, payday loans were introduced, just before the collapse of the financial economy. They are short term consumer loans which are designed to bridge the gap between an empty bank account and your next paycheque. They give consumers a viable source of income which is quick and easy to apply for.
A Payday loan is an very established position in the financial market as they offer relief to an average family from the rocketing prices of household items and utility bills. Supplied by a payday lender, they are usually for amounts between £50 and £1000 with an average APR of 1737%. The loan is intended to be for a period between 14 and 31 days and after that, they can be postponed until the following month, but this will cost an additional months interest.
We have put together a five-step process which you can follow if you find yourself wanting to take out a payday loan:
Source the payday loan company
There are literally thousands of payday lenders on the market. Research into different lenders and identify the one that best suits your needs.
Understand the terms and conditions
Understand all of the ‘small print’ associated with the loan. This is factors like the percentage rate of APR, how quickly you should repay the loan, hidden or additional fees, how to repay the loan etc.
Ensure you meet the criteria
There are very limited necessary criteria required to apply and be accepted for a payday loan. This is usually a minimum age of 18 years old, a UK resident, a UK bank account and a minimum monthly income of £750.
Complete the application
Completing the application will take minutes. It will ask you for the information listed above, the amount of loan required and all you need to do is ‘submit’ your application. It is likely that you will receive the cash deposit in your bank account within 24 hours or less.
Make the repayment
Make the total payday loan repayment within the terms and conditions agreed at the outset i.e. within 14 to 31 days or application. Make sure that you repay the full amount plus the additional interest charged.