What are payday loans?

Payday loans are usually small short term loans that are repaid either early or on your next payday. This will depend on the lender as to what repayment dates are available. These types of loans are meant to assist in times of emergency when cash flow is a problem. It may be that your car has broken down and you need this to get to work. Perhaps an unexpected bill taken from your account and to avoid going overdrawn and incurring bank service fees from your financial institute.

The main purpose of a payday loan is to cover life’s unexpected worries and pay it back on your next payday. If you do not pay this back you will be charged and will incur more debt than originally quoted for.