Category: Payday Loans

There are some loans which have specific uses and so we can only use them for certain things, for example a mortgage can only be used for buying a home. However, there are also lots of loans which we can use to pay for anything that you wish. A payday loan will come into the second category and there are no restrictions set by the lender as to what it should be spent on. However, due to the nature of the loan, you may still find it is suitable for certain things more than others. So, it can be a good idea to think about what you might want to use it for with regards to this.

Lend Small Amounts of Money

A payday lender will tend to only lend a borrower between £100 and £1,000. This would normally be enough to pay for some food, but you may not necessarily be able to get that high an amount of money. This is because you could find that the lender may not be willing to give you lots. Some lenders will decide that they will only lend relatively small amounts to first time borrowers. This is because they do not do a credit check and they want to make sure that they will be able to trust you to make the repayments when they need to be made. Therefore, it might be possible that you will not be able to borrow enough money to pay for what you need, but this will depend on how much it actually costs.

Repay Really Quickly

The payday loan will need to be repaid really quickly and so this means that you will need to be confident that you will have the money available that you need. It is wise to make sure that you are aware of when it needs to be repaid and are sure that you will be able to repay it. You need to think about whether you will have the money available to repay it when you need to and whether the loan will last long enough to help you. It will be repaid when you next get paid and so that could be in a few weeks or days and you will need to think about whether this will be long enough for you to have the money for to cover the food that you need to pay for.

Other Features

It is also worth knowing a few other things about payday loans. It is possible to arrange them very quickly which can be very useful if you need to buy food in a hurry. Some can even be organised within a few hours. You will also find that some lenders will be available outside of normal working hours, which means that you can get the money that you need even when you would not normally be able to organise a loan. This can be very handy if you need the money in an emergency at a time when you would not normally be able to get it.

As payday loans are designed for use in emergencies, they would be useful for buying food. It will have to be repaid quickly which could be great for those people that do not like having a loan for very long, but not so good for those that could do with a bit longer to spread the cost over, so you will have to think about whether it suits you or not. However, this will depend on whether the lender will be able to lend enough money to cover the cost.

There are lots of different opinions on payday loans and it can sometimes be difficult to know whether they are something that you should use or not. Like all loans it is really important to make the decision carefully because there are consequences, both good and bad of taking out a loan. Of course, having access to the extra money is probably the main advantage of every loan, but there are things that you should think about to make sure that it is a good idea for you to use one.

Cost

it is good to start by considering the cost of the loan. Of course, all loans have a cost of some sort as does everything that we buy and you need to think hard about whether you think that the cost is an amount that you are happy to pay. You will need to therefore find out how much the loan will cost. Some people will just look at the interest rate, but this is not a good way to find out how much a loan costs. This is because the amount of interest that we are charged is not only determined by the interest rate but also by how long we have the loan for and whether there are any additional fees on top of the interest. It is therefore a good idea to contact the lender and find out exactly how much it will cost. You will then be able to think about whether you feel that the cost is reasonable or whether you think that it is okay. Consider that you will be paying this on top pf the item that you are buying with the money and so you need to think whether you feel that this will be worth it or not.

Repayments

It is extremely important to also find out about the repayments. You want to be able to make sure that you can afford these and so you need to know what they will be. With a payday loan the repayments will generally be in a lump sum which you repay on your next pay day. This means that you will have a large repayment to make in one go and you therefore need to be careful and check that you will be able to repay it. So make sure that you find out from the lender exactly how much you will be expected to pay and when and then take a look at your bank statements to work out whether you will be able to afford this. It is a good idea to take a look at a few months worth and also think about whether it is likely that you will have any extra expenses in this particular month, that you will need to be aware of and allow for in your calculations. Make sure that note down how much you are being paid and how much you need to spend on essentials, to ensure that there will be enough money left to manage even after the large payment goes out.

Value for Money

It is also good to think about whether you feel that the loan will offer you good value for money. It is a good idea to consider what you are using the loan to pay for and whether you think that it will be worthwhile spending the money on this. It is not always that easy to work out, but one way you can do is to think about whether you would normally pay that much money on an item (the cost and the loan cost) and then you can decide if you feel it is worth paying for the loan to get the item. Also think about what you will get from paying out the money, how it benefit you are whether that will be worth it.