PayDay Loans – The Facts

As the credit crunch starts to bite in the UK with Fuel and food costs rising more and more people are finding that a small emergency such as their car breaking down can leave them short of money until they get paid. Payday Loans are becoming more and more popular for short term borrowing to get over these emergencies.

What is a Payday Loan?

When times are tight Payday Loans are a very simple and hassle free way to get a short term loan until you get paid. They are recommended to be used for short term emergency borrowing . As an example, if you have to travel to work by car due to public transport not being an option. You have a break down and you can’t get to work, catch 22, no car, no work therefore loss of pay – a viscous circle. A Payday Loan may be the answer. You can apply and get the money the same day paid into your bank account.

How do payday loans work?

Very simple. Using a simple on line form on the you can apply in five minutes. There are no credit checks and you can have the money the same day. The requirements are:-

  • You must be over the age of 18
  • Your monthly earnings must be over £750 per month and you must be in full time employment
  • You have to have a Bank account with a debit card, the debit card is used to recoup the loan once you have been paid

Who can get a Payday Loan?

You are likely to qualify if you are over 18, in full time employment and your earnings are over £750. You will also have to have a bank account and debit card.

What information do have to supply?

Generally the simple on line form requires the following information:

  • Your basic details such as name and address Your date of birth Your contact telephone numbers and email Your work and salary details Your bank account and debit card details

Why do the Loan Companies need all this information?

All Loan Companies have to act in a responsible manner and they need this information to verify:

  • That it is you taking out the loan and not someone else using your name
  • That you are in full time employment and able to repay the loan, if not in full time employment they will not give you the Loan
  • That they put the money in your account and no-one else’s account
  • That you can repay them in a simple and hassle-free way by using your Debit card details.

How long does it take?

5 Minutes, literally. All you need to do is fill in a simple on line form. The Loan company will generally give you an instant decision once you have completed their simple on line form. Once approved the money will be deposited into your account the same day. Please note with some banks it may take 1-3 days for the money to clear.

How much can you Borrow?

Most Payday Loan companies will allow you to borrow from £80 to £750 depending on your circumstances such as your monthly salary. The table below shows the costs of Payday Loans:-

Amount Borrowed Amount you repay

£80 £100 £100 £125 £200 £250 £300 £375 £400 £500 £500 £625 £600 £750 £750 £937.50

If you look at the Typical APR of 1845% this sounds horrendous so lets have a look at some comparisons of other forms of lending.

Type of Loan Amount Months Total repayment APR Actual Interest

Installment £500 36 £745 16.9% 49% Installment £500 60 £970 16.9% 94% Payday Loan £500 1 £625 1845% 25%

So now you can see the difference. The longer term loans seem to have much lower interest rates (APR) but in reality you will end up paying a lot more back then you borrowed in comparison to a Payday loan, this is why payday loan companies always focus on the actual amount you will pay back not the Interest rate. Personally I think that if I needed to borrow money for an emergency I would prefer a payday Loan to a normal long term loan as it will be cleared the next time I get paid.

How easy is it to pay back my Loan?

Very Easy – the agreed repayment amount would be debited by the Loan company from the debit card that you registered on the on line form on your next payday – there’s nothing else for you to do.

Can I defer my payment?

Yes – although after deferring the payday loan twice they will ask you to start reducing the balance. Deferral will incur new charges for every month the loan is deferred – but still at our fixed rate – there are no additional charges.

What happens if your bank account details or the day you get paid changes?

If your payday has changed, or you have a new debit card, just contact the customer services department and they will change your details straight away.

What if I have problems paying?

Payday Loan companies understand that people’s circumstances can change. If this is the case, you must let them know as soon as possible and they will always do their best to help.

The most important things to note are:

  • Do not get a Payday Loan if you are unsure that you will be able to pay it back when you get paid.
  • If you are having difficulties then contact the Loan company as soon as possible. Do not bury your head in the sand and hope it goes away.

Military Payday Loans! The Before Pay Check Financial Fiasco, is History Now

Working under the most prestigious service of the country – military – and still struggling with ends to meet! Are finances crumbling on you? And you thinking of another job? Will it easy to maintain two jobs? How would it affect your life? Is there a guarantee that the second job will solve the financial crunch? Military payday loans can offer respite from these queries, if your cash problems are temporary.

‘Temporary’ is the term to concentrate when you are applying for military payday loans. Only small lived financial problems can sanction military payday loans. Urgent medical needs, several bills, and unplanned expenses which are not covered by paycheck – military payday loans are normally meant for these ‘emergency’ situations.

Military payday loans are not very different from usual payday loans. Also known as cash advance loans, they are offered to qualified military personnel on their ability to repay the loans. For military payday loans, a borrower has to give a post dated check to the loan lender. This will authorize the lender to withdraw the amount form the bank account. The authorization can also be in the form of electronic debit. The loan lender will keep this authorization for a week which is usually the time during which the borrower can pay back the loan in cash in exchange of the original check. The borrower will then deposit the check in the borrower’s account. Otherwise, if the borrower is not ready, the military payday loan can be renewed or rolled over. The military payday loan can be extended for any time period but the loan lender receives payment for every extensions.

Military payday loans are in fact very easy to qualify for. The first requirement with military payday loans is a current valid bank account and a regular income which being in military, you already have. A veteran or an active member both can apply for military payday loans. The loan lender can also look whether a person spouse or a family member can qualify for the loan. You might have to provide some personal information which may help in computing how much money you can take. Government identification makes it easy for military personnel to access military payday loans from any part of the world. Lenders have different policies with regard to loan lending, so they might not forward military payday loans to certain divisions of military. Military personnel can also be asked for paychecks, to see your monthly income. Because of the identification with the military, military payday loans are offered with bad credit also.

The interest rates of military payday loans are high. The typical interest rates charged are 25-30%. This can vary from person to person depending on the circumstances. Their resourcefulness can be put to use for education, home improvement, computer financing and any other personal need.

Military payday loans [] come with a downside. According to Uniform Code of Military Justice (UCMJ) Article 123a and 134, default with military payday loans is a punishable offence. There can be strict penalties including confinement, clearance, court marshal, transfer or even discharge. The consequences for military personnel are much stricter than regular payday loans.

There is a lot of hue and cry about military payday loans. These loans are in fact used to target soldiers. Instead of fulfilling emergency needs, they are dragging them into huge debt situation. The promise of quick cash seems promising at first. In order to pay for one payday loan, you take another and eventually have so much debt to pay and that too a very high interest rate. There are astounding interest rates the debt is so high without any possibility of payment. Military payday loans are strictly meant for short term shortfall. If military personnel are not sure about their ability to repay – then it is not the course for them. There will be serious consequences on their financial position not to mention the emotional effect which affects their job productivity. In fact military personnel are the ones who are the prime targets of payday loans.

Military payday loans have grown in popularity and that has given rise to many loan lenders offering them. On one hand military payday loans are a good way to improve finances, but they can form a debt trap if not managed well. The best military payday loans do not discriminate between military personnel and would have interest rates lower than usual payday loans. A military profession doesn’t always offer financial fulfillment like other working class. But with military payday loan, you can restore monetary concerns that sprout just before the paycheck delivers.