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Writer's picturePuang Reviews

Know the Facts Before Taking out a Payday Loan

It was unpredictable but it happened: you had to spend an extra £300 on top of your usual monthly expenses. Maybe it was because your car broke or because you had to sort out some water leaks in your house. Either ways, it makes little difference: your wallet takes no excuses and you need to reach the next payday on little or no money.

The good news, if you find yourself in such situation, is that there are ways to get by. The slightly less positive news is that you have to be careful. A payday loan is the most immediate solution for those who need some money, and need it quick. The internet is a good and easy place to start looking: you can find payday loan lenders online now to compare the rates and choose the one that’s best for you.

But before choosing such option, there are aspects that it’s wise to consider if you don’t want to find your finances in dangerous waters again come the end of the following month.

First and foremost: will you be able to repay the loan? This is not something you should take for granted. The bigger the loan is, the higher will be the interested charged: on average, lenders charge £25 for every £100 borrowed. If you’re borrowing more than £400, you have to consider paying over £100 interest. It’ll also be important to pick the right day to pay back: delays are likely to result in fines, too.

Planning is then essential with payday loans: a well-structured monthly saving plan will help you reach the payback day with enough money in your bank account. And even if interest rates vary slightly between companies, it’ll be wise to compare the rates of different loan providers and pick the lowest.

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