Payday loans are high cost short-term loans
designed to tide people over until payday. Typically you have until your
next payday to pay back your loan plus interest, although some payday
lenders let you choose the repayment period and date.
On
the repayment date, the lender takes the amount you have borrowed plus
the interest charged directly from your bank account. You will need to
make sure you have sufficient money in your account to pay essential
bills like mortgage or rent, heating and food, otherwise you could end
up going overdrawn and having to pay bank charges.
Only take out a payday loan if you are absolutely sure you can repay it on time and don’t be tempted to roll over the loan. If you are already in financial difficulty they are unlikely to help you in the long run. If you need more than a month to repay find a cheaper alternative and if you have a poor credit rating don’t assume you can’t borrow elsewhere.
Only take out a payday loan if you are absolutely sure you can repay it on time and don’t be tempted to roll over the loan. If you are already in financial difficulty they are unlikely to help you in the long run. If you need more than a month to repay find a cheaper alternative and if you have a poor credit rating don’t assume you can’t borrow elsewhere.