According to Ezinearticles.com:- Generally speaking, payday loans tend to be one of the most flexible forms of borrowing. They don't tie borrowers in to months, or years of repayments. Instead you will have until your next payday to pay off the full amount. Invariably this leads to people only borrowing small, manageable amounts. But what is the absolute minimum?
Well, as with most things in the finance industry, the smallest amount that you can borrow on a single payday loan is variable. Whilst some companies will offer loans of just one pound (although common sense would suggest that these are limited) others will set a threshold of around 50 pounds.
Payday loans shouldn't be taken lightly, nor should you apply for one without first considering all options. Whilst they may be useful for accessing emergency funds in a hurry, the interest rates can make them prohibitive and could lead to further problems in the future. Therefore, even when borrowing small amounts, you need to weigh up the pros and cons.
For instance, if you're borrowing a small amount, let's say 60 pounds for this particular example, you need to be sure that you're getting the best deal on it. For instance, some payday loan providers will have a standard fee for a bank transfer. This might be around five pounds. When you factor this in with the interest, which may be up to 25%, you could end up paying quite a sizeable percentage of what you're borrowing purely on charges. Using the above figures, this would mean that you would have to repay a total of 80 pounds for your 60 pound loan.
The good news for anybody looking for a payday loan, particularly those using the Internet, is that there are plenty of lenders out there. Therefore you have the chance to compare the going rates and get a deal that is best suited to your particular circumstances.
For instance it might work out cheaper to get a payday loan that is based on a daily level of interest, particularly if you are only looking to borrow the money for a few days. However, this is reversed when it comes to a longer loan period, with a fixed rate of interest working out significantly cheaper. Some companies will apply charges, particularly if there are different options for payment (i.e. standard and guaranteed same day transfers), therefore it's worth checking all costs before handing over your details.
Never, under any circumstances, pay an upfront fee for a payday loan though. This will not only prove to be hugely expensive, it is also unlikely to result in anything other than a few suggested lenders who you could have found quite happily, for free on your own.
When it comes to payday loans, you do have to throw traditional conventions out of borrowing. The amount of money and the period of time you have to repay it are completely out of step with almost every other form. They aren't inexpensive by any means, but as a safe and reliable source of money for those with debt problems or poor credit, they can be invaluable. In truth, they work more like if you were borrowing money from a friend or family to tide you over. You'll have to pay it back on the arranged and give a little extra to cover. Thanks http://www.my-paydayloans.co.uk
Well, as with most things in the finance industry, the smallest amount that you can borrow on a single payday loan is variable. Whilst some companies will offer loans of just one pound (although common sense would suggest that these are limited) others will set a threshold of around 50 pounds.
Payday loans shouldn't be taken lightly, nor should you apply for one without first considering all options. Whilst they may be useful for accessing emergency funds in a hurry, the interest rates can make them prohibitive and could lead to further problems in the future. Therefore, even when borrowing small amounts, you need to weigh up the pros and cons.
For instance, if you're borrowing a small amount, let's say 60 pounds for this particular example, you need to be sure that you're getting the best deal on it. For instance, some payday loan providers will have a standard fee for a bank transfer. This might be around five pounds. When you factor this in with the interest, which may be up to 25%, you could end up paying quite a sizeable percentage of what you're borrowing purely on charges. Using the above figures, this would mean that you would have to repay a total of 80 pounds for your 60 pound loan.
The good news for anybody looking for a payday loan, particularly those using the Internet, is that there are plenty of lenders out there. Therefore you have the chance to compare the going rates and get a deal that is best suited to your particular circumstances.
For instance it might work out cheaper to get a payday loan that is based on a daily level of interest, particularly if you are only looking to borrow the money for a few days. However, this is reversed when it comes to a longer loan period, with a fixed rate of interest working out significantly cheaper. Some companies will apply charges, particularly if there are different options for payment (i.e. standard and guaranteed same day transfers), therefore it's worth checking all costs before handing over your details.
Never, under any circumstances, pay an upfront fee for a payday loan though. This will not only prove to be hugely expensive, it is also unlikely to result in anything other than a few suggested lenders who you could have found quite happily, for free on your own.
When it comes to payday loans, you do have to throw traditional conventions out of borrowing. The amount of money and the period of time you have to repay it are completely out of step with almost every other form. They aren't inexpensive by any means, but as a safe and reliable source of money for those with debt problems or poor credit, they can be invaluable. In truth, they work more like if you were borrowing money from a friend or family to tide you over. You'll have to pay it back on the arranged and give a little extra to cover. Thanks http://www.my-paydayloans.co.uk
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