What Are Payday Loans?

Payday loans are a quick and easy form of finance which let you borrow a small amount of money over a short period, typically to see you through a cash flow difficulty between running out of money and receiving your next wage or salary.

Easy Approval

They are open to almost anyone over the age of 18 who is in regular employment, and has a suitable bank account with a debit card.

They are quick to arrange - the funds could even be in your account within 24 hours - and there are normally no credit checks or probes into your past financial history.

Expense

This ease of applying and approval come at a price though, and quite a hefty one. The typical APR for a payday loan can be startlingly high, although this is in part because of the short borrowing time which the APR system isn't really designed to illustrate.

A typical fee of £15-£25 per £100 borrowed is charged, and this is added on to the amount you have to repay at payday. Whether this cost is worth paying to get your through a temporary financial emergency is something each applicant will have to decide for themself.