If you are struggling to pay bills then you maybe considering using a payday loan so that you can make it easier to afford them. Although there are no restrictions on what you can use a payday loan for, you may be wise to think about your various options before deciding on using one to pay your bills. This is because, like all loans, there will be interest to pay and it will mean that your loans are more expensive to repay, if you include the loan costs, compared to how much they would cost if you did not use the loan.
Advantages of payday loans
Payday loans have advantages over many other types of lending and it is worth knowing about those advantages so that you can decide whether they might be a good option for you. They can be very quick and easy to arrange which means that you can get the money that you need really quickly. It can sometimes just take a few hours form application to the money arriving in your bank account. This means that if you want to pay your bills very soon, then this could be really handy. There is no credit check either, which not only speeds up the application process but also means that you can still apply even if you have a poor credit record and know that it will not affect whether or not you get accepted. A payday loan will often lend up to £1,000 which means that you should be able to easily borrow enough money to be able to pay for your bills. Usually, there is only one payment necessary for a payday loan. This not only comes on your pay day when you have plenty of money to make the payment, but it also is all repaid in one go which means that you do not have to worry about covering multiple repayments. The loan is paid off in full quickly and the loan is soon eliminated.
There are alternative ways that you could finance your bill payments which could suit you better. Whether they are better for you will depend on your individual circumstances. It could be that you have some savings that you could use to pay for the bills so that you do not have to borrow. It could be that you have other borrowing options that you could consider. There are different options that could be available to you but it will depend on your credit rating and how much money you want to borrow as well as how much time you have to be able to organise a loan. You might be able to use an overdraft that you have already set up or a credit card that you already have, for example, although if you do not have these then they may take too long to arrange or you may feel that they will be too expensive. Other types of loans may be for too much money or you may feel that they are not suitable.
Things to check
If you do decide that a payday loan looks like a good option for you then you need to check a few things first in order to make sure that it will work for you. Make sure that you are aware of the cost of the payday loan and are happy with paying that extra. All loans cost money of course and it is really easy to find out how much a payday loan costs by looking on the lender’s website. There will be a calculator where you can work out how much you will have to repay based on the amount that you have borrowed and you will be able to use that figure to easily calculate the cost of the loan. It is also good to use this figure to work out whether you will be able to afford to repay the loan. You need to work out whether you can afford to make this repayment as well. It is worth taking a look at your bank balance and seeing how much money you have coming in and going out and thinking about whether you will have enough to make the repayment and cope with all of your other expenses as well. It is wise to also look at how much it will cost if you miss a repayment. This will vary between the different lenders and so you will need to compare them. You may think that this will not be necessary because you are confident that you will be able to repay on time. However, although you should be confident about this it is important to make sure that you are aware of these costs. It means that if you are comparing two lenders that are very similar you will have some other way to pick between them. Also, if there is one that is very much higher than the rest then you may wish to disregard this one just in case, you do happen to not manage to make the repayment. It is best to try hard not to miss your repayment and knowing how expensive this could be should motivate you to be careful. However, if you do miss a repayment you want to be sure that it will not cost you more than necessary.