1. In the UK alone, the payday loan market is booming.
With four times as many people turning to these cash
advances in 2011 than in previous years, the total
lending amount has long surpassed the 1 billion mark.
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2. This type of loan is undoubtedly a popular choice with cash strapped
families, especially during these challenging economic times But
there are a few things you need to be aware of before applying for
your loan These unsecured payday advances are only to be used
over the short term, and are best left for emergencies The most
common uses include a costly utilities bill or unexpected car repair

3. Such loans are quick and easy to apply for, which is perhaps the
reason for their huge popularity However before you apply for any
loan amount, you should make sure you fully understand the interest
rates, and how much you will be paying back If you simply read the
stories in the press, you'd be forgiven for thinking that the extreme
rates of interest applied to short term payday loans is designed to
catch people out

4. However, despite figures like '1200% APR' looking scary, they are in
fact relative to your loan amount and period Most lenders let you
borrow between 50 and 1,000 for a maximum of a month - the idea
being you pay them back on your next payday Because you borrow
a smaller amount of money, over a shorter period, the typical APR
(annual percentage rate) that is applied to bank and building society
loans wouldn't work for a payday advance

5. The amount a loan company charges for every 100 you borrow
varies from 10 to as much as 30 This is why interest rates appear so
large, because the length of time you have the money for is
shortened However with APR rates this high, vulnerable indian
loans people risk ending up owing a lot more money than they first
realised

6. This is often the reason why some people have concerns about this
type of instant cash loan When the time comes for the loan and
interest to be repaid, you may find yourself short on cash again This
can result in the taking out of another loan to cover the costs, driving
up your loan costs dramatically

7. When used correctly and sensibly, emergency cash advances can
be the ideal way to relieve your short term money worries The best
thing about these loans is that you can borrow the exact amount you
need, and you set the date for when you pay it back By budgeting
carefully and ensuring you pay everything back on, or before, your
next payday; you should have no trouble with these loans

8. As with any loan from High Street or online vendors, interest rates
vary so make sure you shop around There are no caps or guidelines
on what payday loan lenders can charge when it comes to the APR,
so research the best deals for you and your needs

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