Payday loans are widely offered in the United Kingdom. It is one of the quickest loans that you can make. In fact, if you are a regular client, lenders will not just give you a discount but you can also expect the money to appear into your bank account in no more than an hour after submitting your application. The problem with these loans is that the interest rate is very high. In some cases, the interest rate can reach to up to 30% of the total amount in two to four weeks. And if you failed to make payment on or before your due, you will be penalized. Some loans can reach up to 400% to 500% APR. Now, if you want to avoid this, you just have to do two things.
First of all, compare rates from different lending companies. There are several websites out there that allows you to check rates from at least ten different providers. And from these websites, you would be able to make a loan. Second, it is also important that when you take out a payday loan, never miss a payment. If you promised to pay on your next payday, make sure that pay them on or before your due to avoid being penalized. And if you weren’t able to make a payment, make sure that you communicate with the lender and ask them for an extension of the loan. You may be charged with some fees but this is way better than being penalized because some lenders will charge for every single day after your due. So your loan could easily climb up from 25% to 100% in no more than a month.