There are a huge variety of companies that can offer payday loans for the times when a little bit of extra cash is needed. A payday loan is a very short term loan that covers your financial difficulties for a couple of weeks until you\’re paid.

They are useful for when unexpected expenses come up, for instance your boiler breaking down the week before you get paid. Yikes! Many people don’t know what to do in this scenario.

Short Term Bill Coverage

Most people will be getting close to running out of money during the week before pay day, and so a broken boiler at this stage could be a disaster. However there are many companies that will offer you a small amount of money for a short time to cover these emergency costs.

Generally these payday loans are for no more than a month but can be for as little as a week. Usually they are only willing to lend a maximum of around £500 but some companies will increase this limit once you become an established customer.

Many people use these loans to pay off a stray bill that has been left lying around or for more emergency style situations, such as the sudden death of an oven or dishwashwer. Others may find themselves a bit short after planning a holiday and want that little extra boost to make the holiday one to remember.

Interest Rates & Payday Loans

These loans are only ever intended as a very short term solution and are not meant to be extended for longer periods of time. As a result of this the interest rates tend to be incredibly high, often well over 1000% interest charges. Over a year this would be incredibly expensive, as long term loans can have interest rates as low as 1%. Making sure to choose a low rate is a way to guarantee your loan payout is one you can afford. Some companies allow a negotiated repayment plan, which many prefer.

However this is accepted by payday loan customers because it only results in a £10-£50 charge when worked out over such a short time period. Obviously this is still an expensive way to borrow money and should only be advised if absolutely necessary.

Many people have fallen into the trap of getting payday loans every month which just means less money overall. Using payday loans this way will simply keep you in a shallow debt pool with not a lot of room to get back on your feet. For some though these payday loans offer a solution to their money troubles and can help a family survive through times of hardship.

Using loans responsibly can be the key to a positive loan experience. Naturally, it’s easy to get carried away with loaned money, but one must be constantly cognizant of the fact that the money will have to be paid back, and individuals who procrastinate about repaying will have to pay more in interest than those who are very prompt in repaying their loan.

Some of the online loans UK sites offer fall short of their promises; I write often on the subject of payday loans so that consumers know where to turn to in their time of need. I am passionate about business and often write on the subjects of loans, small businesses, and large personal investments.

Some of the online loans UK sites offer fall short of their promises; I write often on the subject of payday loans so that consumers know where to turn to in their time of need. I am passionate about business and often write on the subjects of loans, small businesses, and large personal investments.

Author Bio: Some of the online loans UK sites offer fall short of their promises; I write often on the subject of payday loans so that consumers know where to turn to in their time of need. I am passionate about business and often write on the subjects of loans, small businesses, and large personal investments.

Category: Finances
Keywords: payday loans, simple loans, weekend loans