Reducing the costs associated with Payday loans
I would first like to caveat this article by saying that payday loans are a very expensive long term way to borrow money, but when used correctly can help get individuals out of difficult situations. We must realise that getting any form of credit or loan to pay off existing debt can in many cases increase the overall amount of debt that you have to your name. With this in mind, we need to be aware that sensible money management and planning is a better long term solution to financial hardship.
If you are in the unfortunate situation (like many of us here) of being short of money towards the end, then it is possible that you may need quick cash fix to tide you over until payday. The payday loans market has rapidly expanded over the last few years in response to the UK’s weak job market and overall impact of global financial crash, so there are a number of ways we can reduce the associated costs of using these kinds of services.
Payday loans commonly have a bad repuation, but are a common source of money for many people in the UK
But what exactly are Payday loans?
Short term or ‘payday loans’ are commonly seen as short term loan that helps an individual keep above board until their next payday. Typcially these loans are granted on a repayment schedule or a few days to a few weeks. The interest rates (APR) are typically in the hundreds or commonly, thousands of percentage points which can be overseen by the short repayment periods.
Many payday loan companies do not require proof of income or similar such documentation which enables a large percentage of the UK population to get access to money, when they may be refused from typical lenders (such as high street banks and credit card companies). The payday loan industry is also considered a common source of lending for individuals with bad credit ratings (people that have had IVAs etc).
How can we reduce the costs associated with taking out such a loan?
The first tip would be to borrow no more than is required at any one time - if you need £50 to cover you until payday, dont borrow £75. This will reduce your overall repayments dramatically and will lower your dependence on this type of lending.
Also shop around for the best interest rate for the type of loan you want. The APR% does change dramatically from lender to lender, so do your research when looking to compare payday loans. You can look them up online at many of the bigger comparison sites and deal aggregator sites.
Also, do ensure you put all of your efforts into paying back the loan as soon as your salary comes in. This will ensure you arent faced with any repayment charges or additional interest.
Watch out for the pot holes!
We can often forget that your health can be an expensive thing to keep in check as i learned quite recently. Usually, we talk mainly about financial matters, tips and the like - but today we will be looking at compensation. Many people are unaware that if you suffer from an accident out in the public domain, for example in the highstreet then you can claim against the council or private party responsible for the accident if it can be proved that they were at fault.
I recently had a run in with a large pot hole, which cause serious damage to my bike. I usually bike to keep costs down, and it is also great for keeping my heart in check - i would recommend it to anyone…! However when i hit the pot hole i bent my wheel badly and came off my bike, hurting my arm when i landed on the road.
Accidents can be a pricey affair - especially if you dont consider a no win no fee personal injury company. There are lots of expenses, such as having to take time of work - medical care and medication for example. If you do have an accident, make sure you follow up any potential opportunities for compensation as there are a many laws that are out there to protect you. You can often employ solicitors that work for you for free, and will pay back any compensation should you win your case in court. Always worth considering if you want to be paid for any accidents that were caused by the wrong doings of others.
Councils are held responsible for poorly maintained public roads, which is why you can often put in a claim if you suffer injury as a result of potholes and the like..
Ill keep you posted on how my claim goes, but i hope i can be compensated ! Im not looking for a large lump sum, just enough to get my bike back on the road and some money to cover the inconvenience of a sprained wrist!
