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Quick cash loans also known as pay day loans UK, have a relatively poor reputation. This is largely caused by their Annual Percentage Rates—which range from 1800% to 3000% Apr. However, as the name implies, these are the interest rates that you would pay on the same loan if it were to be taken out over the course of a year. However, payday loans UK are intended as short term loans, and come with a flat rate fee, usually £30 per £100 borrowed. If you were to extrapolate the flat rate, i.e. the £30, over the course of a year, then, yes, the costs would be astronomical and would far outweigh the cost of the money borrowed. So, let us stress the point: these are short term loans and the APR is misrepresentative. Instant Payday Loans UK are best suited to people who are in need of a short term solution to a short term money problem. For example, it may be that your car needs to go into the garage, and you cannot afford to payment until payday. You can choose to wait until you can afford the bill, or you can take out a payday loan to cover the shortfall. A word of caution, however: you should only take out a payday loan if you know that you will be able to meet the repayment schedule on your next payday. The best candidates for a short term loan, in other words, those that make the best use of them and who do not fall into trouble, are those people who are usually very good at budgeting their household expenses. They are there to provide a solution for short term cash emergencies. They are, as the name implies, there to tide people over until their next payday. Payday loans are also highly suitable for people who have a low, or poor, credit score. Because the loans are short term, they have much fewer stipulations. For instance, if you were to take loan over a 12 month period, then the lender takes a risk over 12 months, clearly. If you have a loan over one month, there is much less time to go wrong in your finances; your less likely to become redundant, fall victim to an accident, or any other eventuality that may make it harder for you to pay. In other words, there is much less risk. Lower risk means that more people will be eligible for the loan; ergo the easier a payday loan is to obtain. Again, though, we must stress that even though they are easier to obtain, you must take them out responsibly. If you know that you cannot repay the loan, then you should not take one out. This is common sense; you don’t borrow from Peter to pay Paul, as they say. Occasionally, people will take out a loan—or any form of credit for that matter—without thinking about the consequences. If you regularly run into money troubles, then this sort of loan may not be the right solution for you. Instead, if you have problems with your monthly outgoings, then you should contact your suppliers and explain the situation; most will put some sort of action in place to help you to better afford your bills. As stated elsewhere, a payday loan is suitable only if you can repay the loan on time or within the roll over period. When used correctly, these loans are a fantastic solution to short term money problems. For further information, or if you think that a payday loan may be the right solution for you, then please visit http://www.handycash.co.uk/
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