Are payday loans worth it?

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In these tough economic times, people are trying to keep up with the rising cost of living with their limited resources. It can be tough to pay bills that are due at the end of the month before your next pay cheque arrives. Many people turn to payday loans to meet their obligations. However, the question is whether payday loans help you or get you further into debt.

What are payday loans?

Payday loans are short-term loans to help borrowers meet their financial obligations until their next payday. Usually, payday loans are funded on the day you apply (dependent on time), and the money is credited into your bank account via faster payment.

Reputable lenders

While you can sometimes get payday loans quickly, remember that these are unsecured loans. Hence, they have a high interest rate. Each payday loan lender has different terms and conditions for the loan, and the interest levied on the borrowed amount will vary. That is why you need to find the best payday loan lender. Thankfully, you can rely on allthelenders, the UK’s first price comparison website dedicated to the payday loan industry. It is regulated and authorised by the FCA and puts you in touch with payday loan direct lenders. The allthelenders website provides 100 per cent independent results, allowing you to find the best and most affordable deal.

Avoid rolling over

If you are extending an already stretched budget, it may be tough to repay the loan on your next payday. This could prompt you to rollover the repayment. However, don’t forget that the interest and fees will accrue on the loan amount, causing the overall cost to increase. Learn more about taking out a short term loan on our comparison website here

Assess your needs carefully

Only borrow an amount that you can afford. There is no point in taking more, as you will be trapped in a debt cycle. While allthelenders puts you in touch with direct lenders, thereby making loans more affordable by keeping the middleman out, you need to be a prudent and smart borrower. It is only then that payday loans become worthwhile and allow you to tide over financial emergencies