Quick payday loans have been available to consumers since the early 1990’s. Since their introduction, quick payday loans have enabled consumers the ability to borrow a small sum of money when a larger borrowing choice was simply just not suitable. These loans are often a consumer favourite when a small-scale cost arises which could not have been planned for in advance. These costs are often the ones which creep up on us and therefore are difficult to budget for in an effective manner. Take for example a replacement tyre for the family car, an emergency vet bill or even a teenager’s phone bill. All of these costs often require our immediate attention financially but may amount to a few hundred pounds which had not previously budgeted for. This is where quick payday loans may been able to assist some consumers; many millions over the years in fact.
The fundamental product offered by quick payday loans is one based on small scale borrowing. This means that quick payday loans are not the same as that of lending offered by credit card providers or banks. Quick payday loans instead operate by offering loans which typically range in value between £100.00 and £500.00. This is in stark contrast to credit cards for example, which can see consumers being approved for credit limits of thousands of pounds. This is why credit cards and bank loans are often used by consumers who wish to satisfy larger scale borrowing, which in turn requires a long-term period of repayment.
The repayment terms offered by quick payday loans lenders focus on delivering options which are realistic and affordable whilst also being in keeping with the size of the loan offered. Whilst a bank would not expect a customer to repay a £5,000.00 loan in a single and one-off repayment, lenders of payday loans do not offer terms of repayment which extend over a number of years. Instead quick payday loans are offered for repayment via a number of pre-agreed monthly repayments. Although the loan values start at as little as £100.00, for some consumers repaying this sum of money, plus the interest charged by the lender as a single and one-off repayment; could still be unaffordable. This is why many lenders who operate in this sector offer a selection of different repayment terms for their short term loans. Given the fact that loans in this sector typically are for sums of money in the region of £300.00, lenders will normally offer payments which can be spread over any number of months up to a 6 month period. So this means if it is most affordable to repay the loan over 3 months or 5 months for example, there will be options of this nature available. There are lenders who will offer longer terms, up to as many as 12 monthly instalments but these terms are usually exclusive to the larger loan sums. In summary there is plenty of choice and flexibility within the quick payday loans marketplace.