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Payday Loans - What Are The Drawbacks And How Do They Work

Written By wong blogjob4 on Thursday, September 19, 2013 | 12:48 PM

Payday Loans - What Are The Drawbacks And How Do They Work
Many of us eagerly await that special monthly day where we receive our pay, and sometimes, our financial situation is so tight the money is gone almost before we know it. Bills, expenses, and the general cost of living can really put a dent in our monetary situation. The worst part is that something can happen out of the blue that might cost us even more money. If you have ever had a car break down, had to take someone to the hospital, or had an unexpected bill pop out of nowhere, you know the feeling. Luckily, instant payday loans can be there to relieve the pain. Getting a loan has become much more difficult if you are dealing with banks. Payday loans are a much faster solution, and they can actually be more convenient for many people. Here is some more information on this great service.

It is a an amount of money that you borrow that is sizable enough to take care of most major expenses you might incur, and then you return the money on your next salary payment. Usually the amount is somewhere between a few hundred and a thousand pounds. To qualify for the loan, you do need to have a job to make sure you can pay it back. How much you can borrow is usually based on your income. If you want to extend the period of the loan you can often do it if you apply within a day and make sure the interest payments are up to date.

How much will this cost?

You will not have to worry about paying any secret fees or fines that appear out of nowhere. Everything you will owe is clearly gone over in the contract you sign. As a general rule of thumb, the amount of money you pay back is going to be around three pounds for every ten you borrow. If you borrow 200 pounds, you will pay back 260. This is the standard rate that many businesses offer, but some will be higher and others lower.

Is this sort of deal that fits for you?

If you have a job that pays consistently and a bank account where the loan can be deposited, a payday loan might be just the thing to meet your temporary financial needs. If your car breaks down, are you going to fix it, or are you going to call your boss and tell him you cannot make it to work? Imagine all the money you might lose in a case like that.

Even if your prior credit history is poor, you can still get a loan.

Here are the benefits of a payday loans:

-simple and easy to get 
-can pay for emergencies easily 
-can avoid debt in some cases 
-almost instantaneous 
-in many cases can have the money within the same day

Payday loans drawbacks: 
The higher rate of interest makes them a poor choice for long term endeavours like buying a house or a car.

How can you get a payday loan in Britain?

You just need a working bank account, a 40 hour a week job, and to be an adult. Most loans are approved, and your credit rating is not a concern. It's a great safety net when you need money the most. Apply for a loan when you need assistance, and see how easy it really is.

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