Why Payday Loans Can Help With Your Mortgage

Paying the mortgage on time is at the top of the monthly financial priorities for the vast majority of homeowners. The thought of falling behind with the mortgage in difficult times can be terrifying, particularly in this economic climate where, for example there was a 10% rise in repossessions during 2011. However, most of us at some point can run into difficulty through no fault of our own, leaving us short of that month's mortgage payment. This is where payday loans can be especially welcome.

Payday loans work extremely well for helping with mortgages for a number of reasons. Firstly, a mortgage payment can be like a deadline, often fixed to a certain day of the month, which sometimes offers less flexibility than we need. A payday loan, on the other hand, can be arranged within minutes and give funds the same day, so if you are short of cash you don't need to wait until payday to sort out the overdue mortgage payment. This can provide real peace of mind for those for whom their home is their most treasured possession.

Furthermore, payday loans may be able to provide hundreds of pounds to borrowers, enough to cover a whole mortgage payment or more. Whereas turning to friends or family can cause problems and result in less cash than you need, a payday loan may be able to provide all the money required to pay the mortgage that month.

Another huge benefit of using a payday lender means you do not have to make complicated arrangements with - or indeed have to pay hefty fines or fees to - the bank or other mortgage provider. Fast and simple, often with a high acceptance rate and no paperwork, a payday loan can be the best means of keeping the rest of your finances untouched and protected.

Payday loans might also be just what is needed to support your mortgage payment when you have had a sudden change of circumstance, or unexpected event like having to pay for car repairs. For that period of time when your salary won't stretch far enough for all the household expenses, a loan can make all the difference.

It is great news for homeowners that a big problem such as finding the funds for a mortgage payment can be solved with a few clicks of the mouse, without paying fees, or being tied into another long-term financial commitment. No surprise, then, that an ever-increasing number of people of all ages and backgrounds are seeking out a helpful, convenient, payday loan provider.

Remember, we are far from alone in needing a cash boost to stay on top of the most important bills - incredibly, over half a million UK homeowners will fall behind with their mortgage payments in this year alone. It therefore makes perfect sense to find a reliable, financial helping hand - and payday loans can help see homeowners through the rough months as well as the smooth.

Are Payday Loans Available to People Who Get Paid Daily?

As with any form of loan or credit, there are a number of rules and restrictions surrounding the accessibility of payday loans. Unusually though, these can vary from company to company, with some being stricter than others, imposing more stringent rules on their customers. With an applicant's employment status playing a significant part in determining whether they are accepted or not, the frequency with which wages are paid is equally important.

Therefore, whilst some stipulate that you must earn a salary that is paid monthly, other lenders are a little more flexible. However, regardless of whether wages are deposited daily, weekly or fortnightly, it is essential that you earn a certain amount. More often than not, this minimum level will be around £750, although some payday loan companies only require £500. As a result, as long as your cumulative salary exceeds this, you stand a good chance of being accepted.

Very few people are paid daily, mostly due to practicality and administration issues. As a result this issue is reasonably rare. In fact, some lenders may not even have a clear policy on this, so you may need to contact them directly before applying.

The main issue for payday loan companies when looking to accept applications from those who aren't paid monthly is that it can be difficult to define an ideal date on which to schedule repayments. Ordinarily, they'd automatically seek to take the money on the next available payday. Unfortunately, in this particular example, the salary you receive on a daily or weekly basis probably isn't going to be enough to cover the cost of a loan, therefore the applicant will need to suggest a date that is more suitable.

From a lender's point of view, this could potentially be seen as an added risk. After all, the idea of a payday loan is for the lending period to run up until the next payday, with this covering the loan amount. Without this certainty, there's a much higher chance that the borrower won't be able to come up with the necessary funds. Of course this is only theoretical, but it is something that the companies need to consider.

If you are being paid daily by your employers, you may need to look a little further when seeking a payday loan. As mentioned, not every lender will be able or prepared to help, so you will have to locate those who can. You might well enjoy more success by using a broker, as they will often give you access to a number of lenders, each one having their own unique criteria for borrowers. It may also be necessary to contact the payday loan company first to discuss your situation and see if they are able to help.

So you might well be able to secure a payday loan, even if you are paid on a daily basis. However, due to lending restrictions, it may prove to be a little challenging to do so. Therefore make sure you spend a little time researching the market and find the company that's best suited to your needs.

A Quick Guide to the Pros and Cons of Payday Loans

Payday loans were virtually unheard of a few years ago, yet in the past two years or so numerous companies offering this form of finance have begun to advertise online, set up stores on the high street and even market their products through TV adverts. As such, most people have heard of payday loans even if they know little about them and have not taken one out. However, there are many people that have taken advantage of them to help them pay bills and make it from one payday to the next. Some of those people will tell you that they love them whereas others have gotten into a financial mess as a result of them, so should you consider taking out payday loans when you are struggling or not? Read on to find out more.

So what exactly is a pay day loan? It is literally a relatively small loan, usually of less than £1000, that is approved by a lender and due to be paid back on a specific agreed date. It may be that you have an unexpected bill that you have not budgeted for one month or that you have expenses that exceed your income on a temporary basis. In either scenario, payday loans could get you the cash that you need quickly and enable you to pay it back when your next pay packet comes through.

As with all financial products available today, there are numerous advantages and disadvantages associated with pay day loans at the moment. Dealing with the advantages first, the main one is that payday loans can literally get you out of a tight spot. If you have no savings to draw on and need a small financial boost for a short term purpose then it can really offer the solution that you are looking for. Of course, there may be a fee and there will definitely be interest applied to the loan but this expense may be worth it if there is no other option. In addition, pay day loans companies do not discriminate against those with poor credit histories. In many cases, they do not even perform credit checks, instead asking only for proof that you will be able to afford to pay the loan back.

However, if something sounds too good to be true then it usually is and pay day loans certainly have their disadvantages. Firstly, as previously mentioned, there will be interest applied to the payday loan and it can be as high as 300% to 400%. That is only if you pay it back on time as well so imagine what it could end up costing you if there is a problem. This brings us neatly to another disadvantage. If, for whatever reason, you cannot pay the debt back then the interest will continue to be added along with charges and this will soon double or even triple the debt. Paying it off may therefore become impossible.

Whether or not you decide to take out one of the many payday loans that are available, you need to weigh up the pros and cons and make a decision that suits you. It may mean taking a big risk but as long as you are comfortable with that risk then it may well work for you. However, if there are other options, such as savings, friends, family or even regular loans then it is worth considering them too. Never rush into payday loans because they will definitely come back to bite you if you do. Instead, take your time and work out the best course of financial action for you.