Product review - Payday Loans

How many of you out there have had those end of month emergency cash-flow situations arise, usually at the worst time possible?  I'd like to bet that many of you reading this, at some point in time, have had an unexpected bill come in, a car breaking down or an unexpected accident.  There is however a product available out there that can assist on those occasions when cash is a  little tight and the bills mount up. Payday loans or cash advance loans are usually thought of as the poor mans choice when it comes to borrowing money, a bad credit loan.   Yes, these cash loans do cater for the less fortunate of us that have poor credit scores and consumers that would probably have difficulty securing short term loans with blue chip or prime lenders but they can also be a very good way of managing immediate cash-flow problems.

The payday loan or instant cash advance is designed to be a short term solution to a problem.  Usually approved within 24 hours, secured over a 30 day period or less and with the option of a rollover by paying the interest accrued, they offer a quick cash loan, often from 100GBP to 1500GBP with no requirement of faxing documents. For those with a poor, or perhaps less than ideal credit score, payday loans can be a fantastic way of securing quick cash at reasonable rates of interest, as the criteria for borrowing can be a lot less stringent than the banks or major credit card providers.  As long as you are over 18, there is a regular income over a certain amount, a bank account with a direct debit facility and in a few cases, some form of identification, you can be pretty much assured that you will be able to secure some sort of quick cash payday loan facility.  Of course, this also means that the interest repayments will be a little higher than other lenders but then there are no invasive interviews, minimal hassle and no detrimental credit checks.

So, are payday loans and cash advances a good idea?  If used correctly and as they are designed, as a quick and easy way to secure a cash advance until payday, they can be a great way to manage short term cash-flow issues.  If you are gainfully employed with a monthly or weekly paycheck there shouldn't be any problem.  The repayments are taken by direct debit, leaving you with nothing to worry about and there is even the facility to just repay the interest, rolling over the initial cash advance or payday loan until you are better situated to pay it back. There are numerous payday loan companies online offering this short term, bad credit loan facility so check some out, compare and choose the best for you.

Payday loans, a good, effective way to borrow relatively small amounts of cash quickly, with no credit checks and no faxed documents and even if you have a bad credit rating they can provide a short term instant cash advance when its most needed.  Definitely a good idea for some.