Whenever you borrow money you should think hard about your decision. But if you want a £1000 loan then you are borrowing quite a significant amount of money and it is worth thinking about whether it is good to get this from a payday lender or not. This is a big chunk to borrow and to repay and so you need to consider whether it is a good idea or not.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
It is wise to have a good think about all of your options. There is really a checklist that you could work through:
You may find that your only option is to use a payday loan. This is something that you should think hard about as these loans can be expensive if you do not manage to pay them back when required. You should not be scared of them but you need to be well prepared.
For example, it is wise to think about how you will manage the repayment. This might be a one off payment when you next get paid, which is often the way with payday loans, although some now allow instalment repayments. Finding £1000 to pay all in one go could be a lot to ask and then even if you do manage to do this, you could end up struggling to cope with paying for everything you need until your next pay day.
Obviously how well you cope will depend on your salary as well as on how much your regular bills are. It might be that you will be able to earn a bit more so that you can manage better or that you can cut down spending on some unnecessary items to help you to cope. This will all depend on your own personal situation.
All borrowing is something which should be considered to be a serious decision. Whether you are paying for something on a credit card or borrowing £1000 with a payday loan, you need to think about it hard. It is so important to understand the consequences of this borrowing and to work out whether it really is what you want to do.
With a payday loan you may have to repay all of the money in one go and when borrowing such a lot of money, there could be difficult consequences to follow. You want to be confident that you can make the repayment and that you will be able to manage afterwards as well. There are some people that find that they have to take out a second payday loan in order to make ends meet after repaying a first one. This is not ideal as it means that you could get loan after loan and end up paying dearly for it.