The beauty of payday loans is that you can apply for them when your need is greatest and then repay them on, or before your next payday. So what happens if you take one out today, but want to (or are able to) repay it tomorrow?

Sometimes you just need a temporary loan to bridge your costs from one month to the next. However, occasionally it might not be months, or even weeks that you need it for, it could just be a matter of days. This is likely to be extremely rare, but it’s certainly not unheard of.

For example, what happens if you need to pay for a plumber in an emergency? If your home is flooding due to a burst pipe and you don’t have the cash available for the plumber’s deposit, you don’t want to have to wait for your pay to land in your account – and neither will the plumber.

You might even have more frivolous reasons for borrowing money. For instance you might have planned a big night out with friends only to find that you don’t have the money and you aren’t due to be paid until the next day. If you really can’t afford it, then you’ll be forced to cancel. However, if you just need a quick cash advance to tide you over, then payday loans offer a viable option.

However, whilst there may well be some situations where you fully expect to have the money available in the very near future, sometimes it can be a case of good fortune. This could mean that you receive a payment that you didn’t expect or were able to secure the funds you needed through another source and therefore are able to repay the payday loan within 24 hours.

This can be a particularly prudent way of resolving your financial difficulties, particularly if you are likely to have to pay sizable fees or suffer hardship as a result of a short-term lack of cash. For instance you might be on the verge of missing your mortgage payments or unable to meet the full price of all bills on the due date. This could lead to a flurry of bank charges, especially if you then manage to exceed your overdraft limit. These fees can really stack up and leave you struggling for weeks to come, whilst causing major damage to your credit rating.

Hesitation in this kind of situation can be critical and may prove to be very expensive indeed. Equally, if you’re overly hasty and apply for a payday loan without properly considering alternatives or who you choose to borrow with, it can be costly. So it’s important that you weigh things up properly before committing to anything and see what options are available to you.

For anybody who does decide to take out a payday loan, usually you won’t have to pay any kind of early repayment fee. However, some lenders will have minimum fees that relate to the full term of a payday loan. For companies that charge interest on a day-to-day basis, if you were to pay off your debt 24 hours later, you could only be charged 2 days worth of interest which would significantly reduce the overall expense of borrowing. It is worth checking though with the lender’s loan agreement to establish what the minimal fees and charges are, if any, before you apply.

The average rate of interest applied to these kinds of loans is usually around 1% per day. So if you were to borrow £200 and repay within 24 hours, you would only need to repay £204. Of course you will also need to factor in any fees that the lender applies as standard, but this is generally a very inexpensive way of finding a financial stopgap.

So if you do have the money available to repay your payday loan, it should be extremely easy to do so. Whilst you may be able to do it directly through the lender’s website, a phone call to the company will often be all it requires. Ultimately though there should be nothing to stop you paying the full amount early, even if it’s within 24 hours.

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends http://Paydaypower.co.uk

Author Bio: Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne