Cash advance loans or payday loans are used by those consumers who need cash quickly previous to their next payday. These loans charge high interest rate but are inexpensive that the accrued fees on the owing debts. Mortgage loans, credit cards, rents, automobile loans etc charge penalties when the due date of payment is gone and you have not paid the bills.
A cash advance loan will help you pay off those penalties quickly and the charge on these loans will approximately be £15 on every £100 or so that you will borrow. There are even better deals but for them, you will have to search around the internet and find different lenders.
Quick Cash To Solve Your Emergency Needs
Life is not at all certain and everyone faces financial problems in their lives because of unexpected emergencies. For example, car breakdown, accident, death etc. Anything can happen with no backup plan you cannot predict your future. So in these situations, one can need cash desperately.
So a payday loan evolved for consumers faced by such situations. They can have the cash they need and pay off their debts. These payday loans will not help you in the long term because they are only designed to solve short-term problems that happen without warning. If you want cash advance loans desperately, then there are some tips you need to follow.
You should do a little research before making any deal with any payday loan creditor to find the best deal available for you. Do not go to any payday lender directly and sign a deal with them. What if he is charging you high interest rate? Hence, researching will help you know about the rates that are charged all around.
Direct Cash Advance Loans
If you are one million of people who get either paid bi-weekly or monthly and have other unexpected bills arriving in the mail from time to time, you understand. There is an enormous number of families struggling at the end of every month.
A payday cash advance or a payday loan can easily solve all of their short-term financial problems. The economy is tough right now and there are many Brits that are stuck in great financial problems. It can be very stressful to see all the bills and you have little or no income to pay them off.
The situation gets worse if any emergency of cash appears and you have no cash with yourself. The end of the month feels like it will never pass because you get out of cash so early. So what measures have the government taken to provide its people relief in these kinds of situations? The answer is a cash advance or payday loans.
Cash advance loans or payday loans are designed for those consumers who are faced by such a dreadful position in which they are desperately in need of cash but they do not have enough of it. They can take out a cash advance loan and get rid of their emergency.
Short Term Loans Required
These loans are short-term loans that are simple and easy to gain. The amount of cash given in these loans is from £75 to £750. They usually bear high interest rate but their usefulness makes this ignorant.
Typically, the lender charged £15 on every £100 borrowed from the day of payment. The lender can also extend the due date of payment. Hence, it will be great if everyone has knowledge about the cash advance loan because you can never predict when you will need it.
If you are stuck in a problem and take out a payday loan from the first lender you contact then it might happen instead of getting the benefit you bear more losses. You should do plentiful for research about the rates offered by various payday lenders.
A very effective way to find the best rates is to search multiple websites over the net where different lenders have quoted different interest rates on the payday loans. There is a lot of competition even between the payday lenders and some of them offer cheap rates to attract more consumers. There are many websites over the internet that will show you different rates by different lenders and which one you should opt for. Then it will be no hassle for you to pay off cash advance loan on time.
Payday Lender Interest Rate in the United Kingdom
Like all other countries, payday loan firms have attained a very strong position in the United Kingdom as well. However, with the passage of time, people are getting a feel of reality as well. High interest charges are becoming a very hard task for the loan applicants to manage.
Loan applicants are not aware of these rates when they apply for these finances. Some companies are even charging interest rates at three hundred percent. It is obvious that payday loan firms apply a high rate as compared to banks because the amounts are much smaller.
However, an interest rate of three hundred percent is simply unmanageable. A lot of people have criticized this practice due to which an interest cap has been applied in some localities of the United Kingdom.
Once you apply for the loan and the amount gets transferred in your account, you have to pay the interest charges under all conditions.
The interest rates rise to even further limits if the payments are not made on time. This increase is not small and you can even witness a wise of a hundred percent.
It is obvious that if you have taken a loan of one thousand pounds and interest is applied at the rate of two hundred percent, you would be paying more than the principal amount.
One way to handle this problem is to discuss everything about the interest charges in advance. In this way, you would know about the rate of extra charges. Even if these rates are low, try to your payday loans on time.
In addition to that, there is one thing which every loan applicant should avoid. Do not take payday loans from multiple companies at a time. Every company has its own interest rates. In addition to that, the payment deadlines vary. Hence, it is quite hard for the loan taker to manage.
Reasons for Receiving a Cash Advance
In my opinion, cash advances can be received for any purpose if you run out of cash during a pay period. This is a very common problem for some individuals. Most of us plan our budget before we get our salary paycheck. This helps us in controlling our expenses and purchase rates.
However, our budget would only include the expenses which are expected. What can be done about sudden costs? For instance, a car issue or an unexpected expense arises which was not planned in advance. It is hard to manage these situations.
It is obvious that you cannot wait to get the money in such circumstances. To receive the money without any delay, you can get hold of cash through a payday advance lender. Try to select a lender which is highly rated or appears to be popular by referrals, etc.
Once you have selected the provider, you need to complete the short online application process. In addition to that, you need to decide the amount of cash which needs to be taken out. If you need £80.00, do not apply for the maximum loan limit. You should remember that the interest amount increases with the loan amount.
Your interest charges will increase if your loan sum is three hundred pounds instead of eighty pounds. Hence, your loan sum should be according to your requirements. Apart from medical purposes, people also take cash advances when they want to buy an expensive branded commodity and they do not have the required sum in their account.
In addition to that, people do not like using their savings for any kind of leisure. An example can be a beach trip. You can take a cash advance loan to buy air tickets. Similarly, getting your house painted or renovated in any manner can also be termed as an example.
Read also: Payday Advances are Not For Long Term Issues
Cash Advances are Less Cumbersome Than Bank Loans
It is a fact that cash advances have their share of negative factors. Even after these negative factors, a lot of people prefer them. In addition to that, the numbers of applications are increasing with the passage of each day. Payday loan companies are aware of this fact. In addition to that, they are aware of the fact that they have a much easier process as compared to banks.
However, in my opinion, the two options cannot be compared with each other. Payday loans are an example of short term assistance. On the other hand, bank loans stretch for a time period of three to five years or even more. The advantage of cash advances over bank loans is that the loan applicant does not need to provide any justification.
Cash advance companies do not demand a reason from the loan takers. They can get the money for almost anything. In addition to that, there is no paperwork. However, banks do not follow such an easy process. There is a proper set of paperwork which needs to be filled by the applicant. He needs to submit collateral to be considered.
If the bank does not recover its dues, the collateral of the customer is liquidated. Banks also have an edge over cash advance companies. There is a very apparent difference in the interest rates of the two financial solutions. Payday loan companies charge a high interest rate.
In most cases, it is above seventy percent. This does not seem a problem for the loan taker when he sends an application. However, the problem begins when the interest payments have to be made. The situation turns from bad to worse when the due date passes away. People who make late payments land into a lot of financial complications because of the additional interest charges.
Choosing the Right Company for Payday Loans
Have you searched ever for payday loan companies on the internet? When you search for these companies through an engine, several web links are displayed to you. Cash advances are taken for urgent purposes. Thus, the loan applicant cannot spend a lot of time in choosing payday loan firms.
There are some good tips which can prove to be very helpful in this relation. Let’s have a look at these tips. The experience of the cash advance company is highly important. In my opinion, new companies are not very reliable and they do not use a very professional approach.
You should remember that once you have finalized a company, you have to pay the loan sum along with the interest charges. Hence, make sure that you are making the right selection. The second factor which needs to be considered is the payment duration. Initially, when you are applying for a loan, the repayment process seems quite easy.
However, the trouble starts when the due date is around the corner. On an average scale, the allotted time period to clear payday loans is two weeks. This time period increases and decreases according to the loan amount and interest charges. Usually, when the interest charges are low, the time is low as well.
As the cash advance company is earning smaller profits, the time period to pay the loans is less as well. If you think that you could not clear your account in the time period, you should look for other options.
Another key factor which is important for the selection of the cash advance company is the number of loan applications. You can also ask your friends and colleagues for better suggestions. People who have attained good cash advance deals can help you. This is better than testing a new company and taking a risk.
Getting Payday Loans Is as Easy as One, Two… Click
Getting some extra cash has never been more affordable and convenient than nowadays with speedyloan. This company makes it so easy that you can just go to their website, fill out the form and get your approval and money the same day delivered into your bank account. Thanks to today’s computing and web technologies it makes it this easy.
You can take a month to three months or more to pay back the loan making it so convenient that it’s better than borrowing from your own brother or sister.
The company makes it this convenient because they know how to do it just right. Take for example some of the reasons you’d need an instant payday loan.
There you are sitting in your easy chair watching the game on television. You and the family are whooping it up as your favorite team is trouncing the heck out of the opposition. Food is flying all over, people are bouncing around on the furniture, things are getting chaotic and the dog is even barking and running around at the excitement.
Suddenly the quarterback gets tackled and fumbles the ball. Someone in the room lets loose and a bowl full of popcorn goes flying in the air and smashes a window or breaks a shelf. Uh oh, a busted window spells trouble as you’ve got to get it fixed quick or more damage might ensue.
Suddenly you find out you’ve got no extra cash around and the insurance company won’t be able to help you for a week. It’s off to the aforementioned URL to get the cash and fix the window.
Even being clumsy oneself while visiting the neighbors can call for some quick cash. You’re in an unfamiliar setting and you get disoriented and knock over a lamp or some other object.
Nothing super expensive, not a family heirloom but something that needs to be replaced. You can just hop on over to the website, take out a loan and have the lamp replaced in no time. A real lifesaver is these loans. Just simple to get and in your hands the same day if all goes well.
There are other scenarios one might not know of and how these loans can come in handy.
The family is at the drive-in movie watching the latest space monster movie. All is well until the space monster appears on the screen scaring half the audience at the drive-in.
One horrified fellow returning to his car with an armload of soft drinks and hot dogs panics and comes crashing into the car causing minor damage. Sure the insurance company will handle it but you need that damage taken care of fast so you rush out and get a quick loan and voila, the damage is repaired.
Things like these issues pop up now and then and in your daily goings-on, you want to make sure you do good with the responsibilities before you. That means having a company that can help you out in times of need at your behest is like having extra armor. You can bring in the rescue funds or the good time funds whenever you need to the same day.
Whether it’s to fix the house or help a neighbor or when that sale comes up for those goods and services you’ve been looking for. You can depend on speed loans for that leg up you’ve been looking for.
Top 3 Ways to Put Your Payday Loan to Work for You
When you conduct a Google search for payday loans all you get are results that tell you why payday loans are such a bad idea. But just go to your local Better Business Association, and see how many complaints are placed against a payday loan business; you’ll find “0” or at least, very few compared to other types of businesses.
Why is that? It’s because payday loans work, when used cautiously, and when you have the pay-back capability. You just need to use them carefully and for things that can give you a certain financial lead.
Everyone’s monetary situation is different, but suppose you have a job and a way of paying back the loan on time, the following are three ways to put your payday loan to work for you:
1 – To Help Pay for a High Dollar Item in Cash
Let’s suppose you want to buy a car, boat, four-wheeler or another type of vehicle in cash. You have a little saved up, but need about $1,000 more to make that vehicle purchase you want. You don’t have any more time to save money, as you have a new job, are going on an important trip or other events where you need the vehicle as soon as possible.
Instead of opting for a vehicle loan, your best option, in this case, might be a payday loan. You can get the amount you need, which in combination with what you already have can help you pay cash for that vehicle you want.
Then in a month or so, all you have to do is pay back the entire payday loan. Following this, you will not have any vehicle payments to make.
2 – An Emergency or Small Home Improvement Need
Oops! Your air conditioner or heater broke down. It will cost $500 to fix and you don’t have that amount budgeted for your expenditures. You can pay it in a few weeks, but what will you do until then? A payday loan can get you over that hump. You can pay for the repair work and live comfortably while you work to pay the payday loan off.
3 – A Little Extra Cash on That Vacation
If you’ve been planning a cruise or vacation for a while, and already have the tickets or tour package you want, then you might want to consider a payday loan to give you a little extra cash to spend, especially if you don’t want to over-extend your credit cards.
This is just a little emergency cash to have on hand for that situation you didn’t plan on or to purchase those interesting foreign products.
There are many financially sound reasons for using a payday loan if you analyze options, outcomes and your payback capacity. Even with high initial fees, and interest rates a payday loan can give you a better overall financial standing when used correctly.
There are times when the high interest “SHORT-TERM” loan is better than a low interest long-term loan.
5 Common Payday Loan Mistakes Borrowers Make
Human’s needs are never-ending as the saying goes the human mind is greedy and expects more and more and never will be satisfied with what it has. However, these days if one gets out buying a better lifestyle it may drain out the pocket leaving no cash for further needs.
In such cases, humans try to get loans and cannot wait until their next salary. In such circumstances, the payday loan provider is gaining a lot. A payday loan provider is a person that provides short finances and will take the borrowed amount as soon as they deposit the salary in the borrower’s account.
Such loan providers earn a good amount of interest on such short loans making the business loss-free. However, the person who suffers in such a situation is the loan borrower. To satisfy some needs, he gets the loan and ends up paying a huge amount of additional money in the form of interest.
The 5 common payday loan mistakes that borrowers make can be listed as follows:
Borrowing too much
This is the most common mistake that many borrowers commit to satisfy their never-ending needs, As the saying goes take only what you need at the dinner table and the same goes for borrowing. Some people borrow extra money for no reason but to be secure the future till the next salary comes.
So if one can have control over their feelings and try to make a budget of their expenses they may not require taking any loan and paying interest on the same.
Not considering the repayment amount
It is easy to borrow a specific sum of money but when it comes to repayment, this is another story altogether. Indeed, you will need to pay the sum borrowed plus the interest amount. Many borrowers forget to consider the interest amount which also is a common mistake committed by many payday loan borrowers.
Extending the repayment
The borrowed amount plus the interest together sums up to be a large amount of money and many borrowers in order to use their salary to repay the sum back try to avoid the repayment. Here the only person that suffers is the borrower. This is because the provider will definitely charge interest for the additional days as well making the repayment sum even bigger.
Underestimating the debt
Many people take a loan and think they can easily pay back the loan at the time of maturity but as mentioned the principle and interest sums up to be a huge amount which is very difficult to pay.
This is the most effective step that one totally ignores. It tries to make a budget where he may be lead a very happy life without taking any payday loans as his salary is properly distributed for their specific use.
These are the 5 common payday loan mistakes that borrowers make and end up getting in big trouble without any reason. Also, the payday loan is a cycle once a person gets into it is very difficult to get out of it.
Read also: Seven Alternatives to Payday Loans