The steep increase in general living costs such as groceries, utility bills and petrol has left many Brits in a financial rut. Even those who were not suffering from any financial difficulties are now likely to be struggling to keep afloat in today's markets.
However, where there is a requirement, there is generally a solution and in this case it is Payday Loans. In fact since September of last year there has been a 55% increase in the number of active Payday loans throughout the UK.
This is because consumers see payday loans as a quick fix situation to their financial difficulties, which, if used correctly they can be. With incredibly high interest rates and stringent charges if repayments are not met though, it's important to consider whether a payday loan is the best solution.
Also known as cash advances, these loans have gained in popularity over the years, and have also been the topic of much debate. This is mainly because of the high pressure that is placed on consumers if they fail to meet the repayment(s).
The major appeal of payday loans for consumers is their speed and convenience. For instance, with proof of employment, a bank account and a debit card, you could have the loan deposited into your account on the same day as applying.
Credit history is not taken into account, so those with bad credit are able to obtain such loans, another reason why their credibility has been disputed.
Essentially, if you know you are going to be able to meet the repayment, which is usually in 31 days, then they are an excellent means by which to obtain some quick cash, with anything from £80 to £800 usually offered.
Interest is usually charged at £25 for every £100 you borrow; subsequent charges may be added if you fail to meet the repayment though.