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Can a Payday Loan be Used to Pay a Charge Card?

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.

Cost

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.

Availability

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.

Repayment

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.

Is it Good to use a Payday Loan to Pay for a Night Out?

Sometimes it can feel like we are always struggling for money and when we want to have some fun there is just no money left to be able to afford to go. We can then feel like it is not fair and that we deserve to have a treat but cannot have it. You may decide that you would like to borrow some money for this night out and think about whether to take out a payday loan for this. Is this a good idea?

Cost of a payday loan

A payday loan will have to be paid for, like all other loans. This means that when you borrow the money for your night out, when you repay it you will have to pay back more than you borrowed. It is important to work out how much this cost will be and decide whether you think that this is worth it. Consider what you will get out of your night out and whether you think that it is worth this extra cost. If you consider how much you normally spend on a night put and add in the cost of the loan, then you can consider whether you still think that the night will offer you good value for money.

The cost of payday loans will vary though. It can be worth comparing different lenders as you will find that there are some that are cheaper than others. Do make sure you compare the fees as well if you do not repay on time. Although you will hope and expect to be able to repay on time, there is always the chance that you will not be able to. This is why it is worth just finding out how much this will cost and comparing it as well as lenders could vary quite a bit here.

Ease of getting a payday loan

Some loans can be really difficult to get and if you decide last minute that you want to have a night out and need the money, you may not have time to arrange it. You might also have to have a credit check, which you might find will stop you getting the loan if you have a low credit score. A payday lender will do no credit check and this means that you will be able to get approval even if you have a poor credit score. You will also find that the whole application process is very simple and so it will not take long to do. A payday lender will tend to get the money to you very quickly as well. You will often have it in your bank within a few hours. This means that if it is a last-minute decision to go out, you will not need long to get the money together and be organised enough to go.

How much can be borrowed with a payday loan

It is worth knowing how much you can borrow as it is different to many other loans. A payday lender will often only lend up to £1,000. This should be plenty for a night out, but a first-time borrower may not be able to get as much. The lender may just want to lend a few hundred pounds to start with until they are sure that you will pay it back on time. Then they might lend more. Of course, a few hundred pounds may be enough, it all depends on what you are doing for your night out. The lenders will vary in how much they will be prepared to lend you and so it is worth checking with them. Some may be prepared to lend you significantly more than others, depending on their lending policies. You may have to contact them directly in order to find out.

Repaying the payday loan

It is worth knowing that you have to repay the payday loan all in one lump sum. A direct debit is set up to g out on the day that you are paid and the payment, for what you borrowed plus the interest and fees will be sent automatically. This is great as you will not forget to pay it, but you will need to make sure that you are confident that the money will be available. You need to check that you pay will be enough to cover it as well as the other direct debits and anything else that you will need to pay on that day. You will also need to be sure that you will be able to manage all of your other expenses until you next get paid too. It is worth actually calculating all of this so that you can be completely confident.

Is it worth it?

It is good to think about the cost of the loan and the care you will need to take to repay it and whether you feel that it is worth it. This will be a very individual decision as it will depend on how much you think that you value and deserve the night out.