123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Six Reasons To Avoid Payday Loans

Profile Picture
By Author: Broad Stevens
Total Articles: 46
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

UK instalment payday loans are preferred over other kinds of borrowings since these loans are hassle-free, requires no bulky documentation and the best part is that payday loans does not require credit checks. Applying online is another lucrative feature and some lenders also allow availing payday loans via the handset. This flexibility to avail loans anytime anywhere has its own flip side. However, customers opting for payday loans are supposed to know the following:
1. UK instalment payday loans are high cost, short term loans and one has to read every aspect of repayment prior to opting for payday loans.
2. Certain payday loans lenders UK charge more for a month than credit cards do for one year. The rates of interest may go as high as 200%. For every 100 euros borrowed, the repayment can go as high as 130 euros per month taking the interest charge to 30%.
3. If availing payday loans is a habit, then put a stop at it for once and all. Balance your income and opt out of payday loan spiralling debt circle. Because, payday loan will only increase the borrowing cost but no increase in income.
4. Never ...
... opt for rollover of the payday loan. This is a trap for customers to come back while the lender will have double interest than what he initially promised. The customer who rolls over the credit is required to pay interest upfront on due date and then a fee is charged for rolling over the credit, which adds to the cost of borrowing.
5. Payday loans lenders UK sometimes misuse the ‘debit from account authorisation’ issued by the borrower and sweep into the borrower account much prior to the repayment date making it difficult for the borrower to plan his finances.
6. Customers of payday loans are turned down by mortgage lenders. As per confidential reports, the borrowers of pay day loans are not granted mortgage loan, even though the repayment of payday loan is made on time.
Hence, short term payday loans should not be seen as long term solutions for financial mess. Therefore, in extreme situations, when all other options are exhausted, one should opt for payday loan. And even for payday loans, it is advisable to do some searching around the web. Depending on the location and the state regulations, the payday loan lenders vary the payment amounts and also the periodicity of the loan. If one requires a payday loan but requires more time for repayment, then instalment loan is the right product. This has the features of both payday loan and instalment loan which is secured by post-dated cheques.
Broad Stevens is author of this article. For further details about UK instalment payday loans and Payday loans lenders UK please visit the website.

Total Views: 507Word Count: 459See All articles From Author

Add Comment

Investing / Finance Articles

1. How To Protect Your Crypto Wallet: Essential Tips Beyond Passwords
Author: Eldon Ryder

2. Ipo Grey Market Premium (gmp) Guide | Live & Upcoming Ipo Gmp Trends
Author: finowings

3. Top Benefits Of Enrolling In A Certificate Course In Banking
Author: sandeep

4. Crizac Ipo Gmp 2025: Key Dates, Price Band & Gmp Update
Author: finowings

5. Stock Market Advisory: The Growing Importance Of Professional Stock Advisory Services
Author: Vinay

6. What Is Sip And How Does It Help Build Wealth?
Author: Sagar Shah

7. Choosing The Right Accounting Firm In East And South Auckland: What You Need To Know
Author: WhizBiz

8. Goldco Review: Best Ira Guide For Investors, Retirement Planners, & Retirees
Author: Gold and Silver Investment News

9. Navigating Financial Growth With Avendus
Author: Drishti Desai

10. The 4 Types Of Income You Need For True Financial Freedom
Author: Wealth Samurai

11. Why Hyderabad Millennials Are Choosing Personal Loans Over Credit Cards
Author: anilsinhaanni

12. How A Retail Lending Specialist Can Help You Secure The Best Loan Deals
Author: sandeep

13. How Knee Replacement Improves Quality Of Life For Arthritis Patients
Author: uttam

14. Stock Market Advisory: Unlocking Investment Success With Share Market Advisory Services
Author: Vinay

15. The Rise Of Investment Banking Companies In Hyderabad’s Financial Scene
Author: Verity knowladge solutions

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: