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General

Will a Payday Loan Help me to Make Ends Meet?

If you are struggling to pay all of your bills and buy everything that you need then you might consider that borrowing some money might be a way to help you get out of this cycle. Although the idea of having some extra money can be really appealing, it is really important to make sure that it is the right solution.

How to make ends meet

Anyone who is struggling to be able to get their money to last until the next time they are paid is said to not being able to make ends meet. It could be that someone gets overdrawn every month or that they have to go without buying things in the days or weeks before they next get paid. There are many reasons why someone might get into this situation and therefore a number of solutions. It is best to start with thinking about whether you could cut down on your spending to help the situation. Some people tend to spend a lot when they are just paid and treat themselves to all sorts of things which means that they then struggle later. If this is what you do then try to slow down that spending and make sure that all of your essentials are paid for before you spend too much on luxury items. If you can put some aside in a savings account just in case your struggle nearer to pay day. It could be that they are spending too much for what they buy and could shop in cheaper places to save money. They may be able to get a better job, work more hours or ask for a promotion or pay rise to try to make more money to help cover all of the expenses. There are lots of things that can be tried and although they are not easy, they will enable you to be less stressed about money and therefore could be well worth it.  Some people will choose thought to take out a loan and they may choose a payday loan.

How a payday loan works

A payday loan is a short-term loan that will lend you a few hundred pounds until you next get paid. Designed to help out with emergencies it could also be used to help you manage until the next pay day. They have to be repaid in a lump sum on the day that you get paid and to make sure that you do not forget they will set up a direct debit. This can help you not to miss the payment but you will have to have the money available. Payday loans can charge a fair bit because they will lend without checking your credit record and so take on quite a bit of risk.

The way that the loan works means that it could help you to make ends meet. If you need some money to keep you going until payday then getting this loan, which you then repay when you get paid, might seem like the perfect answer.

Is it the right idea?

Payday loans were not actually designed to work like this. They were designed to help people out in an emergency. So, if they have a bill they cannot afford, need to replace a white good or have another emergency that they do not have the money for it can help to tide them over. However, there are some problems with borrowing, whether using a payday loan or other loan, to help makes end meet. The problem is that you never have money to reach the end of the month. Taking out the loan will help for one month, but when it is repaid and the interest repaid on top you will be even shorter moneywise the following month. Then you may need to borrow again, but this time it is likely to be for more as you will need to cover what you borrowed and the interest. This could quickly spiral and you could end up with getting loans month after month and this has happened to some people. If you need to keep borrowing more and more, eventually the lender will not give you any more or it will be more than you can afford to repay. If you do not repay it you get charged money and need to find even more and you can end up getting in a complete mess. It is therefore far better to try to figure out a way of making ends meet without borrowing money. This could include cutting down your spending or finding ways to earn more money. It may not be easy but there are lots of ideas online that you could look at which will help you to be able to get out of situation and hopefully be able to more easily manage.

Comparison

Is a Comparison Website the Best Place to Find the Cheapest Payday Loan?


Comparison websites are places that many people go to in order to choose the best price for their financial products. They exist for all sorts of things from supermarkets to hotels and insurance to loans. They are used by lots of people as they are quick and convenient but are they really the best way to find the cheapest payday loan?

How do comparison websites work?

A comparison website will enable you to compare a selection of things without having to get a quote from each one or visit multiple websites. All you do is put in your details once, with regards to what you are looking for and then they will come back with a lost of lenders that will be able to help you. This list is generally in price order with the cheapest at the top, so you will be able to clearly see which would be the cheapest for you to use. Then you can even apply directly to that lender through links in the website, so it is very quick and simple to use. They exist for all sorts of things including payday loan companies.

Shortcomings of comparison websites

It all sounds great, but there are a few things to be aware of. Firstly, comparison websites normally do not include all lenders. They might only pick a selection of them and they may pick the ones that benefit them the most. Comparison websites get paid commission for any leads they generate, which is why they make it so easy to apply for the loans by clicking through links on their website. Although this is perfectly legitimate, it can mean that they may only choose to list lenders that will give them a good commission. This means that you might be missing out on better deals. There may also be lenders that do not want to be on comparison websites and so can only be dealt with directly.

How to find about payday loans

So if comparison websites are not the best way to find a payday loan how do you find out about them? Well, it can be wise to look at a few comparison websites anyway just to get an idea of what companies are on them and how much they cost. You can also use search engines to look for them bearing in mind that those with a higher advertising budget will feature higher as they will be able to pay for sponsored listings. Search engines can be hard work though as there will be pages and pages to scroll through. Another place to consider looking is on personal finance forums There are likely to be discussions about payday loans on these forums. The good thing about these sites is that people will be discussing their experiences. This will help you to see whether there are some lenders that seem to be better than others. It may also be a good idea to ask family and friends. Some of them may have had payday loans in the past and will be able to let you know what the experience was like and whether they would recommend the lender that they used.

The best way to choose

Choosing between lenders can be tricky It can be easy to think that the cost is the only thing we should worry about and that is why comparison websites have sprung up; so that people can easily compare prices. However, there are other things that you should also be looking at in a lender, such as their reputation, their charges if you repay late and things like that. It is a good idea to look at their website, communicate with their customer service and get an overall idea of what they seem to be like as a company.

Using several different methods to find out more about payday loan companies can be a really good idea. Then you will have a good selection to pick from and you will be able to then compare them to each other. Obviously, the cost will be a factor but you will be able to look at other things as well. It is good to think about what things are important to you so that you can compare them across the different lenders. It might eb that you want a lender you have heard of, one with cheap late payment fees, one that is flexible or things like this. Consider what is important to you and then look at the website of the lender and contact them in order to find out. By contacting them you are also testing what their customer service is like as you will be able to see how quickly they get back to you, how polite and friendly they are and most importantly how helpful they are.