Money & Finances

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Is The Use Of Pay Day Loans Wise

Is The Use Of "Pay Day" Loans Wise?

Could pay day loans be the answer consumers with low bank accounts have been looking for? Is there any harm in using these services? Aren't they better than using credit cards or going hungry?

You've seen the commercials. Cute characters promise financial prosperity. Happy, professional individuals appear to regularly visit their corner pay day loan shop as proudly as cashing a check at the bank. Customers at the grocery store all recommend pay day loans as the easy solution for a lack of funds.


Some individuals reason that paying a bill with borrowed money is better than receiving bad credit marks because of not paying the bill. This is understandable. However, some financial institutions are willing to make the occasional exception if contacted about the situation. Or there may be a small fee, but not a credit report made.

Using it for groceries or other items? Consider the true cost before making a decision. Compare the cost of using a pay day (or cash advance) loan to the fees charged for taking a cash advance on your own credit card. Can family help? Often those who are forced to use pay day loans are not able to repay the loan by the next pay check and that can lead to a cycle of debt and stress.


Several sources, including a consumer report by the FTC (Federal Trade Commission) and the CFA (Consumer Federation of America) state that the usual APR is between 350 - 650% with some as high as 780%!

A loan of $100 ranges in cost between $15 - $30. If the loan is not repaid by the pay date then it can be renewed with another fee due at each renewal. A loan of $100 can cost $60 in fees after 3 renewals.


Based on the warnings issued by federal and consumer organizations it is clear that using pay day loans or cash advances from these businesses can often lead to more debt and problems. Some sites were reported to automatically roll over the loan and only withdraw the renewal fee on the pay date. Other sites surveyed by the CFA required customers to agree in contract to not participate in class action suits or to file for bankruptcy.

For those who are having debt problems it is recommended to seek no- or low-cost credit counseling from a local non-profit organization. These organizations can help with reducing current interest charges and lowering monthly payments. If the problem is budget, you should look to a financial planner who can help you to manage the money you do have and avoid using credit at all.

Let The Borrower Decide With Personal Loans UK

Let The Borrower Decide With Personal Loans UK

One thing that has become almost essential in the lives of many people is the loans. With so many demands, needs or even luxuries that a person is forced to meet, it is almost impossible for any person to meet them without taking the loans. The needs that may arise for people during their time can be one or many of the following:

•For business purposes

•For debt consolidation

•For wedding purposes

•For educational purposes

•For home improvement

•For vacation

•For investment purposes

All these purposes can come up for any individual depending upon his profile at that time.

To cater to all these needs that come up from time to time it is always advisable to go in for the personal loans. Now, the question arises why only personal loans. The answer to that question is that the experts believe with the combination of the features and the benefits of the personal loans the needs can be achieved with greater flexibility.

The benefits and the features that the UK borrowers can expect to have from personal loans are:

•Personal loans are available to UK population in both secured and unsecured form. This allows borrowers of all kind to avail the loan and to choose the loan starting from Ј5000 to Ј250000.

•Personal loans are available to people with bad credit history as well. This not only helps in the purpose for which the loan is taken, it also helps in improving the credit score of the borrower.

•Personal loans can be used for any purpose, whether it is business related or for domestic reasons.

•The personal loans in UK are available at cheap interest rates and with increased competition it is expected that the rates will only get more in favor of the borrowers.

With these benefits and others waiting in the wings it is an option, which is designed to serve the borrowers to the optimum.

If you are still unsure as to what to do in terms of the loan, then you can always go online and get a more detailed explanation of how the loan will work for you. Many types of software are available such as debt calculator, EMI calculator; and various experts of the topic are available and can help you in solving your problem. After you have cleared your doubts you can apply for the loan then and there. This method is safe and secure and supports all kinds of services that any borrower can want. The application procedure will include filling up of the forms relating to the personal and loan details. Once the application is submitted the loan decision will be made in a few working days.