Shoppers Set to Have Another Bumper Christmas Thanks to Payday Loans

According to the, last year there was £1.8bn borrowed in payday loans with a sharp increase of lending before the run-up to Christmas. With the economy still reeling and an extra 2.5% in VAT added this year, it seems the reliance of needing payday loans in people's lives is even more prevalent. These short-term loans, usually that have a time-frame of 1-4 weeks for repayment although time can be added for an extra fee, are ideal for people who have come-up short one month and need a quick cash injection to see them through until the next time they get paid from work.

The interest rates for instant payday loans range from 12% upwards, sometimes as high as 40%, this means that the APRs can be in the region of 1-2000%. Although they sound like huge figures, the majority of people need a few hundred pounds to see them until payday and feel that paying £20-60 for the privilege is worth it. In many cases, these loans are needed for those unexpected bills or charges that spring up from time to time, and give people the lifeline they need to avoid extra charges or the embarrassment of not being able to pay them.

With Christmas looming, it can be easy to over-spend on presents especially if you pay by debit card and aren't tracking the amount of money you're spending. This means that once the payments come out and there is no over-draft available, or you're at the limit, then you can be left short for the rest of the month. There is a lot of pressure on families to keep up with fashions and trends, and with kids wanting more and more, it's tough to decide what to get them and when to stop. Even the best budgeters for Christmas presents will go over their limit, and that's where a quick cash fix can help.

In most circumstances, there is no paperwork or lengthy approval period for the payday loans. If you only need a small amount and have employment, and are due to be paid soon then the loans can be approved and you can have the money sat in your bank within an hour. Thanks to Direct Deposit, you can expect to not have to wait around for normal bank transfer time-frames. Normal loans can take at least a week from applying to receiving the funds, and even then it depends on how quickly you can send the paperwork back to the loan company., have been giving people an extra revenue stream to call upon when the going gets tough. Without being a financial guru and exceptional budgeter, many people in the UK are bound to be caught out this Christmas and that's where a payday loan can help. It might be a flat tyre on your car, the boiler breaks down or you are landed with an extra bill that you weren't expecting. These are the situations where payday loans can really help cover your expenses for a relatively low fee for the pleasure.