Payday loans really hit the headlines in 2014 for all the wrong reasons and you could be forgiven for thinking that they need to be avoided at all costs. However, the market has changed significantly and these days you are far better protected as a borrower than ever before. Our guide explains the new world of payday loans and why you might still want to consider one if you only need cash for a very short term period. If you need to borrow over a number of months then better alternatives exist, and our website includes some of these other options.
- The cost cap imposed by the FCA now means that a payday loan could compare favourably to charges imposed by a bank for an unauthorised overdraft.
- You must abide by the agreed repayment terms or you risk incurring extra costs.
- Using a payday loan may inhibit you obtaining a mortgage in the medium term as it may indicate to a mortgage lender that you are in some form of financial distress.
Use the Solution Loans website and its QuickStart tool to help you narrow down your loan options.