Tag Archives: quick short term loans

Quick Short Term Loans Easier To Obtain Than Ever

Applying for quick, short-term loans has never been easier. With more and more payday lenders and other providers offering quick loans through the internet, obtaining a loan can, in many cases, be even easier. You could even get the cash into your bank account on the same day you apply for it!

Whilst payday loans get a lot of bad press it’s worth bearing in mind that they do serve an essential service to many people, especially those with poor credit scores, unable to take out credit cards or other types of loans.

It’s not always easy to balance your finances when there are so many bills and other outgoings over the course of the month, possibly made even worse by other unexpected costs (for example, your car breaking down).

When you don’t have access to credit cards or an overdraft facility on your bank account and you’re being faced with unexpected costs it’s important to have something you know you can rely on. Applying for a poor credit loan or payday loan could help you to bridge that gap until your next payday.

To find out how you can improve your credit score why not check out our other articles:

What is a credit rating and how does it effect me?

Five top tips to improve your finances

Checking your credit score and keeping it high

What to look out for when getting a payday loan

Taking out a payday loan can seem a foreign concept to many of us, however, at some point in life, almost everyone has experienced a financial downturn at one time or another. Unfortunately there are situations when quick money is needed, whether to pay off unexpected bills or when financial demands simply come out of the blue!

It’s in situations like these that payday loans can prove to be a useful solution. A payday loan is essentially a short term loan that last for around a month and is useful for people looking for quick cash to bridge the gap until payday.

In recent years payday loans have become more and more popular as payday lenders never credit score and very rarely ask to see documentation. Once approved the loan can be in your bank within 24 hours.

When shopping around for a payday loan there are a number of points you should look at carefully:

1. The total amount the payday lender is willing to give you. Details on this must be included in the agreement.

2. Payday loan charges. Lenders can include a range of charges, fees and interest rates over the lending period. Always shop around to ensure you’re getting the best deal for you.

3. The APR (or Annual Percentage Rate). This can prove an excellent way of comparing payday loans, however, it’s worth bearing in mind that an APR is a measurement of a yearly loan. Payday loans are monthly and therefore an APR isn’t always the most accurate measuring tool.

4. Available repayment options. Repayment is traditionally set for payday – typically a month after you’ve taken out the loan. However, should it prove difficult to repay the loan you can defer repayments and pay-off in instalments.

Payday Loan Criticisms – Are They Justified?

Payday Loan Criticisms - Are They Justified?

Are payday loan criticisms really justified? We try to debunk some of the myths behind this form of lending.

Payday loans have come in for quite a bit of stick in the last few years – both justified and unjustified.

A large part of the problem with payday loans is the fact that many of their strongest critics are largely ignorant and misunderstand their purpose. In addition to this, if you look at the biggest critics out there, they usually have a political agenda and refuse to meet with the likes of PaydayUK and Wonga to discuss the issues. What does this tell you about those so oppose to this form of lending?

However, I am digressing and I’m not writing this to criticise back-bench politicians who are looking to further their waning careers.

So – What are the main criticisms of payday loans?

1. Payday loan companies encourage people to get in debt.

This is not and never has been true, as far as this writer is aware. Payday lenders are governed by the same authority as other financial organisations – the Financial Services Authority (FSA). Under FSA regulations lenders have to do what is best for the customer in the long-run. They will (or should under FSA) only lend to people they know can repay the debt at the end of the month.

2. Payday loans are frivolous

Is this really true? I don’t think payday loans have been advertised as a frivolous loan to be taken out lightly. They are advised as a source of credit if the borrower is unable to obtain credit elsewhere, such as bank overdrafts and credit cards.

Payday loans are advised for people who find themselves in a situation where they have an unexpected payment due, such as an unforeseen utility bill or car repairs. Regardless – even their strongest critics have to admit that, no matter how strictly regulated the industry might be, lenders have little power over what borrowers spend the money on.

3. Payday loans are expensive

Ok, from the outset payday loans do look expensive with ridiculously high Annual Percentage Rates (APR). However, critics wilfully misunderstand the fact that an APR is an interest rate measured over an “annual” period – usually a year. A payday loan is only supposed to last a month – it’s a small, short term loan that is paid off at the end of the month – not the end of the year!

Therefore, the “actual” interest rate is a lot lower – for example, on average, a borrower who takes a £100 payday loan may only pay back £120 at the end of the month. So the “actual” interest rate works out as 20% interest – but for a loan as small as this its peanuts! In the words of Alexander Meerkat – Simples!

4. Payday loans can lead to a spiral of debt for the borrower

Do they? It’s easy to use payday loans as a scapegoat for borrowers falling into heavy debt. However, did you know the majority of big payday lenders out there actually put safe-guards in place to prevent this?

The likes of PaydayUK and Wonga actually have teams to help manage your debt should their borrowers start to struggle – the last thing they want is for their customers to get into financial difficulties so they will work out a debt management plan that suits their needs.

In addition to this – it’s just as easy to fall into debt using credit cards and bank overdrafts. I fell into debt as a student with both of these forms of credit and struggled for the first few years after leaving University. Just something to bear-in-mind…

So – are the critics justified in their attacks on payday loan companies? I’ll let you decide for yourself.

Related articles:

Short Term Loans Briding the Gap until Payday?

Wonga and PaydayUK seek to educate UK about Payday Loans

Alternatives to Credit Cards

Short Term Loans Briding the Gap until Payday?

Short Term Loans Briding the Gap until Payday?

Short Term Loans Briding the Gap until Payday?

Are short term loans the best solution to help bridge the gap until payday? Probably not to be completely honest. Let’s face it – they can be useful if you’re caught short and you’re unable to pay a bill or you’re faced with unexpected expenses due to that “unforseen” emergency.

But are payday loans the best solution to help you last until payday because you’ve overspent on your credit card or you’re simply out of cash? To be brutally honest with you – no. If you’re struggling to make ends meet then payday loans will probably not help your situation and you could find yourself getting into even more debt.

Unfortunately this is something that a lot of lenders will not tell you – especially at the moment with the large number of families and even young single people struggling through existing debt, low incomes and high inflation.

So what alternatives are? You could simply tighten your belt, cut back spending on non-neccesary, luxury items. But, here at Creditwindow, we’re realists. We understand that it’s never as simple as that – everyone needs to splurg on themselves every now and then.

So – you could try selling some of that unwanted gold, silver, platinum jewllery. There are loads of “cash for gold” companies out there willing to take your unwanted jewllery in exchange for cold hard cash.

Creditwindow understands that these cash for gold adverts look a little – cheesy or downright dodgy but they are for real – believe it or not!

If cash for gold doesn’t appeal to you then what about online pawn brokers? Look at Borro – they offer cash for anything you want to pawn, be it a television, an expensive watch or some other unwanted gadget. Borro are probably one of the most respected pawn brokers out there so they’re at least worth loooking at if you’re considering it.

Last but not least – payday loans. Ok, let’s look at the payday lenders out there. You have PaydayUK and Wonga – two of the bigger and more trusted loan companies and are certainly worth considering if you have to go down that “dark path.” Just remember to pay the loan back at the end of the month otherwise the interest costs could be extremely high.

Payday Loans Thought To Be The Main Reason Behind Low Income Debt

Payday Loans Thought To Be The Main Reason Behind Low Income Debt

Payday loans and short term loans are thought to be the main reason behind low income consumers being faced with spiralling debt problems.

Debt experts are suggesting that payday loans are the primary cause for lower income consumers facing mounting debts.

Due to the inflexibility of some mainstream lenders, most notably banks as a result of the UK economic recession, people on low incomes are having to turn to payday loans to help ease “their financial burdens.”

In many cases short term loans such as payday loans and doorstep loans can help to illeviate the financial pressure on British people. However, those on low incomes are urged to be cautious when opting for a quick, short term solution to brige the gap until payday.

One debt expert commented:

“If the problem is unsecured debt that has become unmanageable then it’s important that people who are struggling to meet their repayments seek help.”

He added that people on low incomes should look into what state benefits they could be entitled to, it could mean the difference between mounting debt and the ability to face those monthly costs until payday.

Should payday loan debt get out of control consumers are urged to consider debt management plans to help ease the debt by consolidating the debt so the consumer repays the amount in easy, manageable chunks.

Free money services such as the Money Advisory Service and the Consumer Credit Counselling Service may be worth talking to if you’re after help in controlling personal debt.

Creditwindow urge any consumers to be careful when seeking credit cards, personal loans or any type of financial borrowing. Anyone looking for a loan or credit card should do some thorough research before applying for them. Creditwindow boasts a number of guides, news and features that deliver impartial advice on financial lending.

To find out more please feel free to check out any of the main categories on this site, it’s worth knowing what your options are and the differences between the loans and credit cards.

Wonga and PaydayUK seek to educate UK about Payday Loans

payday loan firms educate British public about short term loans

payday loan firms educate British public about short term loans

Payday loan firms, such as Wonga and PaydayUKhave had a bad rap over the years, but do they really deserve it?

The likes of the press and politicians seem to enjoy jumping on the bandwagon when it comes to payday loans, largely because they don’t understand the industry or they simply refuse to acknowledge that they might be wrong.

Fortunately payday lenders such as Wonga and PaydayUK have done quite a lot in recent years in an attempt to educate the British public about the nature of these short term loans.

These quick payday loans are essentially act as a payday gap and are especially useful if you receive an unexpected bill or have simply overspent that month.

As long as you pay the loan back in time there is no reason why a payday loan wouldn’t be the right solution for you.

Whilst the APR (annual percentage rate) of the loan appears astronomical it’s not really representative of the what you actually pay back. Let’s be realistic for a minute – an APR is an interest measurement over a year, not over a month – the length of time you borrow the payday loan for.

In essence you only end up paying an additional £20 – £25 in interest rates on top of the loan. For example, if you borrow £100 then you pay back £125, not really a major amount of interest. The interest only builds up if you don’t repay the loan quickly enough.

If you’re looking for a quick, short term loan then it might be worthwhile – compare our range of payday loan lenders and see if you can find the right one for you.

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