A Pay-Day Loan – Is it For You?

Good finance news folks! – you don’t have to panic and sweat until pay day, quick cash is available from lots and lots of pay-day loan companies right now. However is a pay-day loan for you?

It’s safe to say that pay-day loans can be life-savers. However it also must be said that such loans should only be used in moderation if you are to avoid financial ruin in the long run. Also normally you will still be able to take out pay-day loans even if you have CCJ’s as long as you can meet the following conditions.

In order to qualify for a Pay-Day loan you must be in paid work – not self-employed as a rule. Secondly you must have your salary paid into your bank account. For Pay-day loan purposes your account can have either a debit card, a cheque book or both. However generally speaking, a cheque guarantee card isn’t required.

As a rule of thumb pay-day loan amounts are from around £80 – £850

If you start at the lower end of the pay-day loan amount scale and pay it back on time. it’s often

the case that loan providers will be willing to lend you a higher amount the next time you need a loan.

Be wary though. Short repayment periods often mean that pay day loan fees can often be quite high. Fees of twenty – twenty five percent of the amount you borrow are quite common. Also remember to watch out for those sneaky, dreaded – hidden charges.

Another good fact to remember is that often you can still get a pay-day loan even when you already have one which has not been fully paid back yet.