Payday loans are a popular, easily accessible and fast way for people to obtain small cash loans when they need money urgently. These types of loan have long been available here in the UK providing a much needed line of credit for people who are refused credit elsewhere.
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As with all industries they evolve over time to provide the products and services that customers demand, this is so with the payday loans industry. One such change was the need to provide a method of loan repayment that did not require the customer to have a debit card. Not everyone has a debit card and so where refused loans because they had no way of making a guaranteed repayment. The loan companies realised this and now many firms offer no debit card payday loans where the customer can repay the loan with a direct debit rather than with a debit card.
Payday loans were originally introduced to provide workers who would run low on funds near to the end of the month due to extra expenses or unforeseen circumstances. A payday loan was designed to tide you over till the new payday with a small cash loan. When you got paid the new month you would repay the loan and interest charges. You can generally expect to pay back around £10 for every £100 borrowed.
Many people do however find it difficult to repay the whole of the amount by the next month. People started asking for extensions on their loans so they could repay the money that they had borrowed the next month or the month after that. As a result some lenders now provide 3 month loans in the UK where the borrower has an extended 3 months for the repayment rather than the standard 1 month. Taking a loan out over a longer period will however incur higher charges than those incurred by single month loans.
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