How a Payday Loan Can Keep You in Control of Your Finances

This article originated at: Poor Credit Auto Loans Tips

For many people there is often a feeling of absolute helplessness when financial issues begin to envelop every aspect of their life. When you find that you don’t even have the money available to cover your upcoming bills or to pay off an overdraft that is racking up bank charges, it can be a highly stressful experience. As a result you could find that your finances are completely out of control. It would be a brave (misguided) person who would claim that Payday loans are the optimum solution. There are certainly instances where it actually creates further financial trouble. However, for those who are able to budget effectively and understand the risks associated with accruing more debt, it can be a great way to reclaim control.

Sadly a traditional bank loan simply isn’t within the grasp of many consumers today. As a consequence, when funds are needed hastily, there’s a good chance that they will struggle to get the money they need. With the banks tightening their belts and reducing the amount their lending and often taking a fair few hours to provide any kind of answer, alternative borrowing options are often sought out. This leaves many people coming up short in their time of need. Payday loans are like no other form of conventional financing. The payday loan is unlike almost every other borrowing option available to consumers today.

Rather than covering repayments over a prolonged period, you’ll need to repay the balance on your next payday – hence the name. This accounts for why the interest rates are so high and how companies are able to accept applications from more people. Speaking of easier access, you will often find that most payday loan providers do only the most basic credit checks to calculate your viability as a borrower. All that they will ask is that you meet their employment requirements, are over the age of 18 and are have a bank account. That’s pretty much it. Obviously the payday loan provider will have their own unique requirements, but often the most important is simply that you are gainfully employed and earn a certain amount.

In the most part you will only need to earn £500 each month, but there are a number of companies who do demand more. This may mean that self employed people and those who work part-time may struggle to obtain the funds they need though. You’ll be able to speed through the application as well. The simple application process means that you can be done and dusted within just a few minutes and, subject to acceptance, the money could be with you in equally swift time. Due to the short-term nature of the finance and the unique interest rates associated, most lenders will only offer £1,000 to £1,500 per loan.

This is often significantly reduced for those who are borrowing for the first time, so you will need to bear this in mind. So rather than allowing your finances to get away from you and struggling to cover bank charges or meet other day-to-day bills, you could choose a payday loan. There’s no hiding the potential risks, especially in a situation where repayments are defaulted or repayment would prove impossible, however this can easily be avoided through the application of a little common sense.