London Payday Loans, Loans £80 to £1000 Same Day
Are you considering using London payday loans? A survey carried out by The Money Advice Service has shown that out of the 2000 people questioned, Two.44% of them expect to fund Christmas via a payday loan.
As pressure mounts to buy the latest gadgets and gifts, more people than ever before are having to turn to loans. It’s not just fancy gifts that people are fighting to afford however, it’s everything to do with the festive season. The food, decorations, gifts and drinks all add up to fairly a large sum of money.
The question is should you turn to a payday loan this Christmas if you’re fighting financially?
Look realistically at your situation before taking out London payday loans
The very first thing you should do is take a realistic look at your financial situation. Payday loans can be truly useful, providing you can afford to pay them back.
The fundamental rule of a payday loan is you pay it back in utter at the end of the month. As soon as your next pay check goes into your bank account, the lender will take the loan repayment automatically. This includes the interested owed on the loan too. Therefore you need to make sure you’re able to pay back the total amount without any further problems.
There are some people who are still paying off the London payday loans they took out last Christmas. Around 9% of the 2000 people questioned admitted they were still repaying last year’s spending spree. Obviously if you’re still paying off last Christmas, you shouldn’t consider borrowing again this Christmas. You will simply be getting yourself into further financial difficulties.
Longer payday waiting times encourage borrowing
It’s not simply greed that drives people to borrow more across the Christmas period. Many people don’t actually get paid for a longer time period at Christmas time. Instead of having to wait four weeks for payment, they risk waiting up to six weeks. This can leave them in real trouble. They don’t just have to worry about the cost of Christmas, they also have to worry about their monthly bills and other expenses across the month. That’s where London payday loans can come in truly useful.
Promotions set to come with a warning for London Payday Loans
The Financial Conduct Authority is indeed commencing to pin down on the payday loan market. It is proposing that companies add risk warnings on their advertisements and promotions. This is designed to make sure customers think cautiously before they take out a loan. While there’s certainly good logic behind this, it’s unlikely to deter those in desperate need of a loan.
The one good thing that will come from these fresh switches in advertising is you’ll see which lenders are responsible. It can be difficult finding a decent lender when there are so many loan sharks out there. Consumers will clearly be able to see which ones go after the fresh rules and which lenders should be avoided.
Tips for using payday loans responsibly this Christmas with London Payday Loans
If you’re indeed fighting to afford the cost of Christmas then a payday loan can help you provided you use them correctly. The key factors to consider include:
•Don’t borrow more than you need to
•Pay for what you need, not what you want
•Pay the loan back in chunks if possible
The number one rule is to never borrow more than you actually need to. Payday lenders will typically lend you up to £500. However, there are some who will look at letting you borrow £1,000 – £2,000.
Usually you need to have built up a good credit rating to get these enhanced loans, but that isn’t always the case. London Payday loans vary from lender to lender. Just because you can lend a high amount, it doesn’t mean you should. Always consider how much you can afford to pay back at the end of the month.
Another way to save money is to only borrow for what you need, not what you want. There’s a big difference inbetween want and need. For example, you may want to buy your children the latest gadgets but do you actually need to?
Write a list of Christmas essentials and determine what you can pay for yourself. Then whatever is left over is what you actually need to borrow. Recall, the more you borrow the higher the interest will be.
When it comes to actually paying the loan back, attempt to pay it off in chunks via January. You could even save money via December if you can. Paying off puny chunks of the debt if you come into any extra money is a good idea. You could even use any money you’re given at Christmas to pay off the loan. It may seem boring, but financially it could ensure you commence the Fresh Year off with a peace of mind.
When is a London Payday Loan not a good idea?
Taking out London payday loans isn’t a good idea if:
•You are presently in serious financial trouble
•You can’t afford to make the repayments
•You can’t ensure how much you’re going to get paid
Even tho’ payday loans are designed for those in financial trouble, they are only supposed to be a improvised solution. There are bad credit payday loans available which can help you get the money you need. However, if you’re in serious financial trouble there might be another solution that’s better for your circumstances.
Overall, if you are planning on taking out London payday loans this Christmas you certainly won’t be alone. However, you do need to think cautiously before you apply to ensure it’s the right decision for you.