If you are a student then you will be familiar with how tricky it can be to manage your finances. Not only are the student loan amounts rather small, it can be difficult to manage between instalments at times. It may be the first time that you have lived outside of home and you have to pay rent and council tax as well as utilities and food and leave enough for travel and rent. Even if you are good at budgeting, you may just find that the amount of money that you have does not go far enough or that you struggle to pay for everything that you need. It may be that you are thinking of looking into student payday loans.
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.
There are different types of student payday loan and it is worth understanding what your options are before you pick one. A typical payday loan will lend you a lump sum of money, usually a few hundred pounds and then ask you to repay it when you are next paid. These rely on you having an income and some students may have this if they have a part time job. However, many students do not work and so need another option. There are student payday loans where the repayment is not due in the short term, like other payday loans, but when you get your next loan instalment. This means that the money can keep you going until then and you will pay it back when you have the money available to do so.
It is good to consider the types of student payday loan and think about which might be the best one for you. It will probably depend on whether you have a job or not and whether you think that you could cope with repaying in the short term or would rather wait until you get you next chunk of loan money.
It is good to think about all of your options though. You need to consider whether you will be better off doing something else. Borrowing money will always be expensive and so if you can prevent that cost then you will be better off in the long run. However, sometimes borrowing can help you out of trouble, perhaps if you have an unexpected bill or just make a mistake when you are budgeting.
Of course, it is sensible to look at other borrowing options, but you may find that you have very little choice if you have no income or just a small income. Your age may also restrict your borrowing options and it may lead to you not having the time to build up a good credit rating.
Some students may turn to their parents for help, but this is not always easy. Having shown your independence by moving away from home, it is unlikely that you will want to go back to them and ask for money. You may want to prove that you can manage, even if you have to learn from a few mistakes along the way. You may also know that your parents will not have the money to be able to help you out.
Choosing whether to have a student payday loan is a personal thing. It is good to think about whether you have any cheaper options available to you. Consider whether it may be better to get a job, find alternative lending which is cheaper or ask your parents. Also think about the consequences of the loan, the effect it will have on your credit rating and how you will manage on leas money once you have repaid it. In fact repayment can be one of the main things to think about as it could have big consequences on your future finances. Obviously the repayment has to be made and will include charges on top of what you borrow. The more you borrow, the more you have to repay and you need to plan how you will manage the repayment as well as how you manage your finances after that repayment, to avoid getting short of money again.