Is a Payday Loan Good for Someone who is Afraid of Debt?

There are many reasons for needing to borrow money, but there are some people that get really worried about borrowing money. This could be because they have been brought up to think that borrowing is bad or that they have got into trouble with borrowing before or something else. Whatever the reason, if they need to borrow money it may mean that they will find the whole situation rather stressful. There are some types of borrowing that are better for this sort of person than others. A payday loan can be really good for those afraid of debt as it has a number of features which could be helpful.

  • Low chance of being turned down – with a payday loan there is a very low chance that you will be turned down for the loan. Some people worry about borrowing money because they think that they will not be allowed to have a loan. As there is no credit check then it means that the loan is offered to many more people than a conventional loan. Being turned down for a loan is not only disheartening but it can have a negative impact on your credit record. Therefore, if you can choose a payday loan, where it is more likely that you will be accepted, it will mean that it will not have this negative impact. You will only need to fulfil a few criteria such as being resident in the UK, over 18, have a regular income and a current account. There are very few people that would not fulfil these criteria and so it is very likely that you would be eligible for a loan like this.
  • Repaid very quickly – some people worry about debt because they do not like to owe money for very long. With a payday loan this can be helped by the fact that the loan is repaid very quickly. It gets repaid when you next get paid, which means the maximum time that you will owe money for will be four weeks, but it is more likely to be just a few weeks. It will therefore not be very long at all before you will be debt free. The closer to your pay day that you borrow the money, the sooner it will be when it is paid off. You will often have the flexibility to repay it early if you are able to as well.
  • Not much paperwork – sometimes it is the amount of paperwork that has to be filled out which can make a loan stressful for some people. This is why it is good to know that this will not be the case with a payday loan. You might be able to apply over the telephone or online too, which means that you will be able to avoid doing any paperwork. It is good to check this out with the lender though as they all have different ways of doing things.
  • Quick to arrange – a payday loan can be arranged very quickly. This means that you will not have to be concerned with waiting around for a decision or for the money to arrive which can be a stressful process. With some lenders you may find that you have the money in your account within a few hours. This means that you will not have to spend lots of time worrying about whether you have been approved for the loan and whether the money will arrive in time.

It will depend on why you are afraid of debt as to whether payday loans will resolve this problem for you. However, it could be extremely useful and is worth considering as it is so different to other loans. The fact that most people get approved, the application process is quick and simple and the loan is repaid very quickly. All of these factors could be things that will make this type of loan more attractive than others. It is worth comparing the payday loan to other types of loans to see whether it feels like it would work better. It is important to be aware of how the loan works so that you are clear as to whether it really will suit you. It is also good to compare different payday lenders so that you can check out how they differ. The most obvious thing to compare is the cost and it is important that you are not paying more than necessary. However, it is also important to make sure that you are getting good value for money so look at other features of lenders as well such as how good their customer service is and things like this. It is worth thinking about what would be important to you in a good lender so that you can look for those features.

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