You’re most likely thinking at this point that you’re pretty much in a shedload of trouble – your bank account doesn’t have enough to cover whatever it is you need to pay for, whether it be an emergency car repair or a sudden unforeseen bill, and you’re still a week or more away from being able to afford it. You can’t very well go to your boss and ask him to float a few quid your way, so where do you turn?
There’s always an option
First off, you need to stay calm and try not to panic. There’s always options open to you in situations like this, and as long as you keep a cool head you’ll be able to pick and choose from the best one – though sometimes it seems like you can only pick the best choice from a range of rather poor options, like having to resort to asking your friends or family for a quick loan, or having to swallow your pride and take out an online payday loan.
You’re typically not going to have enough time to go to your bank or another traditional lender to get the funds you need, especially if it’s an emergency. Not only that, but lending criteria have become so tight that most banks won’t lend you a single penny, even if you’ve got nearly flawless credit, and while you would be able to access an excellent, low cost loan at your local credit union, the process for becoming a member will take longer than you have, so you’re going to have to find a better way.
“Better” doesn’t always mean the best
So not paying for this sudden expense isn’t an option, and neither is waiting about for a bank or building society to get back to you isn’t viable either. If you can’t (or won’t) talk to a local charity or rely on friends or family, you’re going to have to take out an instant cash loan from a payday advance lender; it’s not the best choice, but it’s better than not being able to repay it at all.
However, if you think you’re going to find a lender that doesn’t charge an arm and a leg for their short term loans, you’ve got another thing coming. Most providers offer no credit check payday loans, which means that they are unsecured consumer credit – and that you’re going to be paying through the nose for the privilege of getting your money in a hurry; annualised percentage rates of 2,000 per cent to as high as 4,000 per cent aren’t unheard of in the least, though this typically works out to interest of around £25 a week for every £100 borrowed.
Don’t ever bite off more than you can chew
When you’re applying for a payday loan, it can be tempting to just go for the maximum amount that you can get from a lender in order to have a bit of a cushion. However, you would do well to avoid taking out even a pound more than you need to meet your expense, as you’re going to have to pay every one of those pounds back plus interest – if you bite off more than you can chew, you’re going to be in a tight spot indeed.
Late fees, when it comes to payday lending, are incredibly punitive. More than one Brit has found themselves in an inescapable spiral of debt because they’ve been unable to repay just one payday loan on time, leading to massive roll-over fees that compound the interest to astronomical levels.
Payday lending can be an incredible tool when used sparingly and only in an emergency, but you need to be incredibly careful that you don’t end up regretting your decision!