Five helpful tips before you opt for payday loans

Businessman pressing a Payday Loan concept button. Instagram Styling Applied.

Payday loans shouldn’t be taken without careful consideration. Opt for a payday loan only if you are genuinely facing a financial problem and you’re low on cash.

Here are some helpful tips before taking a payday loan:

1) Always do research. Never opt for anything before doing proper research. Read up on the companies that offer payday loans and check the APR along with their repayment terms. For extra security, find out if the company is registered with the FCA.

2) Ask yourself how badly you need the loan. If it is possible to wait until you get your salary, then do so. Don’t opt for a payday loan unnecessarily because you will have to pay interest on the amount that you borrow, which will create an unnecessary burden later.

3) Never opt for the first company you come across. Don’t fall prey to lenders offering instantaneous loans at low interest. They are always fraudsters who will only end up using your bank account information for their profit.

4) Plan how to pay back the loan. Always have a plan in place regarding how to pay back the money you owe. Payday loans shouldn’t be thought of as a long-term cash management solution but more as a quick fix to get out of a financial problem.

5) Treat them as a last resort. Ask your family and friends for loans first because you may not be able to accommodate the interest rate of payday loans.

Payday loans can prove to be an invaluable help when you need money urgently. However, before taking the loan, compare the rates and then select the most affordable payday lender. You can now do all this and more on the allthelenders website, which is the UK’s first comparison website for the short-term loan industry. The site is regulated and authorised by the FCA, and takes pride in offering 100% independent comparison results.