There may be no getting away from the fact that, if you borrow money, you have to pay interest and cash loans are no exception. There may, however, be a more cost effective way of borrowing money that you may imagine.
If you look at the average APR for payday cash loans, your first reaction may be one of horror. The important thing you may wish to remember though, is that this shows the cost of the borrowing on an annual basis.
With a payday loan, however, you are borrowing the money for only a few days or weeks and will pay interest only for the number of days that you actually have the borrowing.
This means that in some circumstances a cash loan may prove to be a more cost effective way of getting that fast cash injection than, say, using an unauthorised overdraft or your credit card.
Uses for a payday loan
Once your cash advance is in your bank account you can use it for whatever purpose you like. You may have:
received a larger than expected bill that can’t be put off until payday arrives;
spotted a bargain price for an item that you’ve had you eye on for some time but which is available for a few days only;
seen your dream holiday advertised but which needs to be secured by a deposit;
children who are going off on a school trip and need some new clothes;
children who are not going off on a school trip but need new clothes anyway;
a washing machine which is on its last legs and past the point where getting it repaired again makes economic sense;
forgotten the birthday of someone close to you and need to make amends – and quickly;
just decided that you want to treat yourself and your nearest and dearest to a special meal out;
a car that needs some work before it can pass an MOT.
With cash loans you typically don’t have to justify to anyone why you want the cash, provided you are confident that you can meet the agreed repayment in full and on time.