If you need cash fast, considering easy payday loans may be an option.
It happens to almost all of us – a bill suddenly drops through the letterbox that you had forgotten and – horror of horrors – it needs paying before your next payday! Okay, so let’s look at some of the options potentially open to you:
| you may use your credit card, if it’s not already maxed out and if the bill payee accepts credit card payments
| you might have an overdraft facility and use this to pay off the bill
| you may ask friends or family if they can help
All of these are options but there is another and that is to consider easy payday loans.
Make sure you understand the APR
Easy payday loans may be a solution if you need an urgent cash injection. They are aimed at people looking to borrow a reasonably small amount of money, typically $100 to $5000, and who will be able to pay it back on their next payday.
Potentially less embarrassing than asking friends and family for help, payday loans need not be cost-prohibitive either. You may have read that payday loans come with a high rate of interest; however, the APR (annual percentage rate) quoted is for the year and you are not borrowing over the year with your payday loan.
Therefore you are typically not repaying the sum based on that large APR that jumps out at you from the webpage, but an amount based on you borrowing the money for a few days or weeks.
Some online payday loan companies will show you exactly how much borrowing from them will cost, so you can then see how cost effective a cash advance may be (depending on your circumstances), rather than trying to work out the cost yourself.
Consider overdraft charges and credit card interest charges
An article in the national newspaper the Daily Mail earlier this year highlighted how some High Street banks may charge more for an unauthorised overdraft for the short term than the cost of a typical payday loan. If you use your overdraft and it is unauthorised, in some cases you may have to pay more than if you had taken out a short term payday loan.
If considering using your credit card you may also wish to check how much interest you are going to be charged and what the fees are for withdrawing cash on your credit card. Again, in some cases and subject to the amounts of money involved, these may work out less cost-efficient than if you had been approved for easy payday loans.