If you have an outstanding charge card or want to repay what you owe in full, then you may be looking for solutions on how to pay it. There are many options that you could consider and one of them could be to borrow the money. This could allow you to be able to repay the charge card more easily and maybe more cheaply as well but you will have to work out whether this really will be the case. You might think that a payday loan will be the right solution for you, as it is a short term loan and available to lots of people. It could very well be, but you should consider it first and decide whether it will work for you.
It is good to start by comparing the cost. Your charge card will have an interest rate and you will be able to compare that to the interest rate on the payday loan. However, this is not the only cost that you might have for each of these so there are better ways to compare them. It is good to work out exactly how much you will repay, so for the payday loan, for example you will be able to work this out using the calculator on the lender’s website. You will be able to put in the amount that you wish to borrow and how long for and this will allow you to be able to work out what you will repay in full. For the charge card it could be more complex and you may need to get in touch with the lender to ask them. Once you have compared the two, you will be able to decide which of them will be the best for you. Cost may not be the only factor in your decision but it could be an influencer all the same.
You may wonder how easy it will be to get a payday loan. You will actually find that there are lots of payday lenders, which means that you have a better chance of finding one that suits you and that will be happy to lend to you. Payday lenders actually have very little criteria for accepting borrowers. They do no credit check and so you will not be turned down if you have a low credit score. This means that many more people can borrow from them than with conventional loans. The only restriction might be in the amount that you can borrow. If you are a first-time borrower, you may be restricted in how much you can borrow. You might only be allowed to borrower a few hundred pounds so that you can show that you are responsible enough to repay on time and then the lender may allow you to have more next time. This means that if you owe a lot on your charge card, you may find that you will not be able to borrow enough form one lender, in order to repay it all.
The repayment on a payday loan is normally in a one-off lump sum. This money is taken by direct debit on the day that you are paid. It means that you should have enough money available to pay it and the loan is all repaid in one go. This can be great for anyone that likes the idea of clearing a debt really quickly. The loan is all paid off within a few weeks and you no longer have to think about being in debt. Some people get stressed when they owe money and so by repaying it quickly it will be a way to reduce that debt. However, it can mean that you will be having to pay out a large sum of money in one go. It will depend on how much you borrow of course, as to how large it is. Some people would rather spread that payment rather than paying it out all in one go. This is personal decision, partly based on how you feel about being in debt and partly based on what you can afford. You will need to have a think about whether it will work for you.
Whether to use a payday loan to pay off another loan can be a tricky decision. It is good to calculate the cost of doing this and whether you are happy with that. You also need to think about whether you are happy with repaying in a lump sum. This could suit you better if you do not like being in debt but need to be motivated to repay it. A payday loan could help you to get that repayment done. It is worth spending time thinking about the pros and cons of both and deciding whether it will be the right decision for you.