payday loans trapThese days there is much controversy surrounding the subject of so called Payday Loans. These little loans are designed as a short term fix for a temporary cash flow problem, often brought about by unexpected outlay or an error in the monthly budget. Used correctly that can be ideal but more and more people are turning to them to simply help them get through the month.

Borrow today, cash in the bank in just a few hours and pay back the next time you receive your wages, even if credit history is less than perfect – sounds great in theory but what happens when you have to repay? The whole loan plus the agreed interest (usually pretty high) has to be fully paid in one hit – and then what happens? Where will this leave your finances next month? How are you going to plus the hole in the budget again? … Another loan perhaps?

You get the picture – before you know it you’ve become another victim of the Payday Loans trap a hole that’s difficult to get out of. Use a Payday Loan wisely and avoid this trap at all costs.

Payday loans are particularly attractive to those with a less than perfect credit rating and those who struggle to obtain finance via their own bank or who are already up to their overdraft limit. Doorstep loans have an even more flexible eligibility criteria – they are still the same loans for bad credit but also available for those who may not be working full time, self employed or retired.

Other options do exist, options like doorstep loans which provide access to small cash loans but, unlike a payday loan, the repayments are divided into small, weekly, manageable amounts and spread out over a period of up to 52 weeks. Interest is still going to be high but there’s less of a chance of multiple loans.

Then again and better still look at other option, why not ask your employer or a family member or close friend – they may be able to give you an advance of your wages without the interest rate.

Of course, you could always ask yourself “do I really need a loan?” Perhaps there is another way – a part time job, start your own business and run it in your spare time or look round the house, loft and garage at all those items surplus to requirement … clothes that don’t fit, designer gear you bought but don’t wear, toys the kids have grown out of, bikes that are too small, books that have been read, jewellery, tools, the list is endless. Everything has a value so why not advertise on the online auction sites, the local classified ads websites, the local paper or get yourself out of bed early at a weekend and get yourself down to the local car boot sale and have some fun whilst making some money without having to turn to commercial lenders.

Be careful, borrow wisely and always look for another way – don’t be the next victim.