It may come as a surprise to you to know that almost 50% of the UK population have little to no savings behind them. We live in a world where everything costs a small fortune and realistically managing a budget can be a challenge in itself. When you do not have any savings behind you, something as simple as urgent dental care, car trouble, or an unexpected bill can lead to financial and emotional distress. So, what exactly can you do if you find yourself in this type of situation?
The first thing that many people do is to turn to their credit card or bank. Unfortunately, it can be almost impossible to get a loan from a traditional lender if you are already experiencing financial problems. Unlike payday loan lenders, the majority of traditional lenders do not look at the bigger picture and focus solely on your current situation. It is no secret that the majority of banks, building societies and credit cards prefer to lend to those who are already financially well-off and not in need of credit.
A short-term loan arranged by a provider, such as Sure Money UK can give you the cash injection that you need until your next payday. While it would be misleading to say that a payday loan is 100% problem-free, it would be unfair to make such a claim. Should you make your repayments on time and clear the balance that you have borrowed within the time frame arranged, then it truly will be problem-free. However, if you start to miss payments and do not communicate with your lender that you are struggling, then you may start to incur late payment fees which can further add stress to your financial situation.
This is why there is no such thing as a no credit check payday loan. The laws and regulations set out in the United Kingdom are designed to ensure that anyone who takes out credit can realistically afford to repay it without placing themselves in further financial difficulties. You will be asked a series of questions during your application that will evaluate your ability to be able to repay the short-term loan. It is absolutely imperative that you answered the questions honestly to prevent yourself from ending up with more money problems than you can handle.
By lying on a payday loan application, the only person that you are deceiving would be yourself. If you are currently suffering financial difficulties and are not able to meet your current debt repayments, then you can contact various agencies to help resolve your situation. In circumstances such as these, it is always highly recommended not to take out any further credit until you are in a better financial situation.
If you are able to meet your repayments, then a payday loan can be used to cover any existing debts that you may have to reduce your monthly outgoings. You will then have a period of between 1 to 6 months to pay off your payday loan, meaning that you can effectively spread the cost and make your payments more manageable. While a payday loan may not be the best option for everybody, for the majority of people, it can offer them the lifeline that they need to get back on their feet.