Hello dear reader. This is the first post at 24 payday loans UK, which outlines what this financial blog is about.
So what is this blog all about? As the name says it, this is about finance and loans, most specifically payday loans as they are offered in the UK.
Payday loans is a rather recent phenomenon which did not exist 20 years ago. In a nutshell a payday loan is a short -term loan where the next payday check is used as collateral. These loans are for small amounts (usually not more than 1000 £) and do not request any credit check. The only prerequisite is to be employed so that your next pay check can be used as a guarantee to repay the loan. The rates applied to these instant-cash loan is higher than regular rates and this is understandable given that no good credit history is necessary to obtain the loan.
These payday loans are sometimes referred as instant-cash because it is possible to get the cash in your bank account in less than one hour if you apply to one of the online lenders. This is one of the main advantages of these short-term loans, and such a speedy access to easy cash was never before possible in human history. The other main benefit is that no credit history check is needed.
Opponents to this form of borrowing outline the negative aspect, which is high rates and fees. And the fact that they are nor properly regulated, unlike in the USA. This is why payday loans should be used with caution and moderation. They are very helpful if you have an immediate need some urgent money, to pay for a doctor bill or a fine. But do not use such loans to pay for your daily or monthly expenses like food or rent. Because these costs are recurring, you may fall into a spiral of bad debt and ultimately default and file for bankruptcy.
Payday loans are still in their infancy and regulation needs to be improved in order to protect the poorest citizens against such risks as well as abuses by the least honest operators. Also each country is different. The largest market is the USA, followed by the UK. Because of the prolonged recession since 2008 more and more households are financially distressed and payday loans can be a risky solution to them.
This was a brief introduction of the blog theme. Looking forward we will bring you any news and information related to UK payday loans so that you can make a wise decision before committing to such borrowing. Have a good day.