For millions of UK residents, payday loans are an effective way to help pay for unexpected bills or expenses. Many times, they can save you from incurring late charges or even help you avoid costly overdrafts. However a payday loan might not be the right option for you. Before taking out a loan, you should make sure this option is suitable for your needs and circumstances.
What is the most common use for a payday loan?
We carefully surveyed our customers and found that most of them were utilising our services to cover unexpected bills, avoid late fees on their credit card bills and to avoid overdraft in the current account.
Is a payday loan not right for me?
While payday loans are a useful tool, they are not the solution to everyone's financial situation. Before applying for a payday loan, please make sure to research all options available to you.
- Always know your available bank balance so you can avoid writing a cheque if there is not enough money to cover the expense.
- If you have a late bill, call the company and see if you can work out a late payment arrangement. Many companies are willing to work with their customers when they know they will receive payment, even if it is going to be a few days late.
- Try to cut down on your day to day expenses. Bring a lunch to work instead of dining out every day and avoid unnecessary spending like expensive coffee drinks.
- Find a great debt relief program that will work for you.
- See if you are eligible for a cash advance from your credit card company. Make sure you are well informed of the fees that are associated with any type of credit card cash advance as the APR could be more than that of a payday loan plan.
- Never be embarrassed to ask close friends and family for help. Aid can be in the form of lending money or helping you to establish a budget.
Be sure to check out our financial tips page for more money saving strategies!