{"id":279,"date":"2020-04-28T07:58:04","date_gmt":"2020-04-28T06:58:04","guid":{"rendered":"https:\/\/www.safemoneyloan.co.uk\/blog\/?p=279"},"modified":"2020-04-28T07:58:06","modified_gmt":"2020-04-28T06:58:06","slug":"are-payday-loans-as-bad-as-you-think","status":"publish","type":"post","link":"https:\/\/www.safemoneyloan.co.uk\/blog\/are-payday-loans-as-bad-as-you-think\/","title":{"rendered":"Are Payday Loans as Bad as You Think?"},"content":{"rendered":"\n

Payday\nloans are notorious for charging high-interest rates. Most of the people say\nthat they seduce you rolling over a loan every month that leads to a debt trap.\nThey are considered more expensive than a credit card. The APR of such loans\ncan be three times higher than other short-term loans. Well, there are\ndifferent reasons for addressing payday loans as a devil.<\/p>\n\n\n\n

The\nfact is any short-term loan can tie you up with a debt trap if you do not\nunderstand how they work and if you borrow more than your affordability. The\nfirst thing you need to understand is loans help you tide over during financial\nemergencies. If you borrow money for your discretionary expenses, you will\nnaturally fall in a debt spiral.<\/p>\n\n\n\n

Taking\nout a payday loan is not a bad idea if you have a financial emergency and you\nhave a repaying capacity. As long as you are sure that you will pay back the\nloan on time, there will not be any problems. The best idea to know your\naffordability is to use the online calculator to know the total cost of the\nloan. If you have left money to pay back the loan after meeting all of your\nexpenses, you can avoid falling in debt. <\/p>\n\n\n\n

You\nall know very well that payday loans are highly risky, but several benefits are\nof these loans that you must know.<\/p>\n\n\n\n

Suitable\nfor bad credit<\/h2>\n\n\n\n

Payday\nloans have been designed to help tide over people with bad credit history.\nBanks do not accept applications from bad credit, and hence you have only one\noption left. Of course, you will have to pay a bit high interest, but you can\nmanage repayments easily if you do not borrow more than your affordability. <\/p>\n\n\n\n

Further,\napplying for these loans is more accessible than others as you do not have to\nsubmit collateral, nor do you have to arrange a guarantor. A lender will lend\nyou money without asking you about the purpose. However, they will run a credit\ncheck, but it will not leave any hard footprints on your credit report.<\/p>\n\n\n\n

Easy\nto manage<\/h2>\n\n\n\n

As bad credit payday loans<\/a><\/strong> are small, and hence they are more manageable than long-term loans. The length of these loans is usually not more than two weeks. It means you can quickly get rid of the debt. However, some direct lenders allow you to pay back the loan in one month. <\/p>\n\n\n\n

There\nis no risk of falling behind repayment, as many lenders are using modern\ntechnology. They link your account with theirs and send in a reminder to\nreimburse the debt when the due date is imminent so that you can make sure that\nthe account has enough money.<\/p>\n\n\n\n

It is\na one-size-fits-all loan<\/h2>\n\n\n\n

This\nshort-term loan can help you meet all of your needs. Whether your car is not up\nand running or your laptop needs a repair, you can take out payday loans with\ndirect lenders for any purposes. You need to fill in the application form and submit\nyour bank statement. If the lender signs off on your application, you will get\nmoney. The lender will not put restrictions on using the loan.<\/p>\n\n\n\n

It can\nsave your money<\/h2>\n\n\n\n

Processing\nfees, upfront fees, default fees and hidden fees quickly add up the cost of the\nloan. Some short-term loans carry processing fees, and it varies from loan to\nloan. Payday loans do not charge such fees. The total cost of the loan will be\nthe total amount you borrow and the interest. <\/p>\n\n\n\n

Some\npeople use credit cards to withdraw money \u2013 called a cash advance. It also acts\nlike payday loans, but they are more expensive. Cash advances can cost you a\nsmall fortune. As you withdraw money using your credit card, the interest\nstarts accruing immediately, and the interest rates can be outrageously high. <\/p>\n\n\n\n

Interest\nrates are capped<\/h2>\n\n\n\n

One\nof the significant benefits of payday loans is interest rates are capped at\n0.8% per day. It means no direct lender can charge the interest rate over 0.8%.\nDirect lenders who lend money under FCA guidelines do not charge unauthorized\nfees. Since the interest rates are capped, your lender will not exploit you. <\/p>\n\n\n\n

Payday\nloans can be a bit expensive if you have a bad credit rating, but it will not\nthrow you in an endless circle of debt as long as you borrow money as per your\naffordability. <\/p>\n","protected":false},"excerpt":{"rendered":"

Payday loans are notorious for charging high-interest rates. Most of the people say that they seduce you rolling over a loan every month that leads to a debt trap. They…<\/p>\n","protected":false},"author":1,"featured_media":280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[17],"class_list":["post-279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans","tag-bad-credit-payday-loans","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=279"}],"version-history":[{"count":1,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/279\/revisions"}],"predecessor-version":[{"id":281,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/279\/revisions\/281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/media\/280"}],"wp:attachment":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}