So you have decided you need a payday loan? In this article I look at the things to look out for when choosing a payday loan lender. Whilst a payday loan is a short term loan, it is still a big commitment. You need to be sure you can afford to repay it and get it as cheap as possible.
The First thing to think about when searching for a payday loan
You need to be sure that you can pay it back on your next payday comfortably. Will you be left with enough money to live on after repaying your payday loan? If the answer is no then I would strongly advise against taking one out.
The problem is that if you find you cannot repay the payday loan, you could end up rolling it over for months on end. When you roll over a payday loan you only pay the interest and nothing off the actual loan. In the end you can end up paying a lot for a little amount borrowed.
Compare the prices of different payday loan providers
Have a look at a couple of lenders to see how much they charge overall. If you are looking for a loan for say a week or so, Wonga might be a good place to borrow from. The reason I say that is because you will be charged less interest than from some of the other lenders. Wonga charge an amount per day where as most lenders charge a fixed amount of around £25 per £100 borrow for 30 days. This amount stays the same even if you are borrowing for only a week. Their is a Wonga Review on this site. Feel free to read it if you like.
Check for Payday Loan Reviews for the lender you are looking at
Checking around the Internet for reviews is normally a good idea. You can get an overall impression of how a lender treats its customers. This can be important should the unexpected happen and you are unable to repay your loan. You may need to set up a repayment plan and you would want a lender that will be sympathetic towards your situation rather than aggressive.
I have written a number of reviews for Payday Loan lenders I have used. Feel free to check them out and make your own decision.
Saving Money on a Payday Loan
Quite a few payday lenders provide discount codes for first time customers. A search on the Internet is usually a good idea.
A final word on Payday Loans
A payday loan is an expensive thing and is not something to be taken lightly. As I mention at the beginning of this post, make sure you can afford to pay it back. Don’t get caught in a payday loan trap. Be careful and only borrow what you can afford.