This is one question that we get asked quite a lot here at UK Payday Loans. Payday loans are taken on for a short length of time. With a payday loan it differs from the more traditional type of borrowing as the loan repayment period is typically around 30 days – this is how the name of the loan i.e. ‘payday loan’; people who are in work may find themselves in a position whereby they would need to clear some unforseen debt – an online payday advance would be suitable in situations such as this to clear such a debt. Then, when the debt was cleared, the person who had applied for the payday loan would then be able to pay back the money that they had borrowed at the end of the month, or at an argreed date when the cash advance applicant had received their wages.
Payday loans have had a lot of press coverage in recent months within the UK and this is largely based on the high annual percentage rates – whilst the percentage rates of interest are high, this is based upon the loan being paid back over 1 month. Compare this to the overdraft charges that people may experience by overstretching their bank account, or the credit card charges that companies inflict on their customers who go over their limits on spending – the APR on these charges far outweigh any pay day loans fee’s.
So payday loans can be paid off at the end of the month and this typically takes 30 days. So, if the money was lent on the 4th of the month it would be expected to be paid back at the 30th or 31st of the month and the loan would be subsequently lent for a period of 26/27 days. They are useful for situations whereby a quick cash injection is needed, but they should not be used for situations where larger sums of money is needed.
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