Payday Loans - Santa Claus is Coming

By: J Tillotson

Are you one of those people who always have their Christmas presents bought months in advance, or do you run around at the last minute on Christmas Eve trying to buy presents for 20 people? Or perhaps you bought all your presents but another expense has cropped up and there's no money left over to pay for it?

Whatever the reason, if you need a lump sum fast this Christmas, a payday loan may be the solution.

Sometimes called Christmas loans or cash advance loans, a payday loan will give you a manageable amount - between ?80 and ?1000 - which is due to be paid out of your next wage packet. The money will automatically come out of your bank on your payment date, so you don't even need to think about it once you've taken the loan out.

There are no credit checks with payday loans. The only criteria needed is that you earn at least ?305 per month and are over 18. The lenders will usually specify that you pay back the loan in full, with interest, or finance charge, on your next payday. Other lenders may let you pay back in two or three instalments, but may charge an extra fee for this.

Payday loans have a substantial interest charge set on them. The average is ?29 for every ?100 you borrow, so ask the lender exactly how much you'd need to repay and make sure you can afford it before taking out the loan. The penalties for defaulting on a payday loan are very high because of the high interest rate charged on the loan, making missed payments difficult to catch up with.

You can only take out one at a time, but if you find yourself taking out payday loans regularly it might be wise to review your financial position and see about some debt management instead.

Payday Loans
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