Following a rise in the number of people using short-term loans to advance their income at the end of financially difficult months, provider Payday Express has offered an insight into the benefits of this straightforward credit resource.

Payday loans meet the needs of customers who are looking to borrow a relatively small amount of money to be repaid over a short period – often to ease personal cash flow in a month with unusual or additional expenses.

These short-term loans, also known as fast payday loans, act like a salary advance, providing a way to bridge the gap when money is tight before the next payday. Funds are generally paid out on the same day upon which they’ve been applied for; and are then paid back once a person has received their next wage payment.

The demand for such loans is on the rise, with financial price comparison website Moneysupermarket.com reporting a 400 per cent increase in the number of searches for the products between January and March this year.

Payday Express Operations Manager Sarah Carroll said: “For customers who have temporary cash flow issues because of larger than anticipated bills and expenses within a month, or who are faced with emergency expenses, payday loans offer customers a choice alongside other credit options.

“This choice is often cheaper than alternatives, such as an unauthorised overdraft – and it is a simple solution to short-term credit needs, where the cost and duration of the loan is known upfront, and which doesn’t involve running up long term debt.”

The company is keen to stress that same day loans are not designed for unemployed people or those on very low incomes or benefits.

Instead, they offer a straightforward choice to employed people who have simply found themselves a bit short between paydays. The loans are simple to apply for online; funds are received quickly, sometimes even within an hour; and the repayment structure is clear.

Customers know from the very beginning exactly what needs to be repaid and when. For example, if a person borrows £80, they will need to pay back £100 once their next wage instalment has been received. This is generally cheaper than incurring unauthorised overdraft fees and can be more appropriate than arranging a longer term bank loan when credit is only required for a short period.

Via EPR Network
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