We are bombarded by payday loans UK wide, on television, on the high street and on the internet? Everyone has heard bad things about the huge rates of interest, but due to the difficulty of getting a loan from a high street bank it seems that the payday loans lender on the internet, such as QuickQuid for instance, will be around for a long time yet and we have to get used to payday loans. Because they accept people with bad credit they are usually regarded as the easy option and the most popular.
So What Are Other Ways of Obtaining Money?
There are various alternatives to payday loans such as getting an overdraft, pawning items or getting a bank loan. As referred to above, not everyone is eligible to a bank loan such as not having enough collateral. Collateral generally refers to a house and a regular source of employment. You also need good credit, which may also be a problem. There are other things you can do so a borrow from a friend or relative and looking for a loan from a credit union, though as with a bank you need to have a good credit rating in order to be accepted. It seems it all comes down to good or bad credit what sort of loan you are eligible for.
What Happens If Money Is Not Paid Back?
With a pawned item, all that happens is that an item is sold and you lose it. If you don’t pay back an overdraft you may be taken to court and ordered to pay back the money, in which case you probably will have to take out some kind of loan. With a bank loan things might be serious as it likely that the house has been secured on the loan and you may be repossessed. This is one of the reasons people are reluctant to take out a bank loan, preferring to look for the best payday loans UK. To borrow from a friend generally means losing a friend and they may even take you to court if the debt is not repaid. Credit unions set up loans using direct debit meaning that they should be relatively easy to pay back. However if you remove the direct debit and stop paying they too may take you to court. With any debt it is essential to pay the money back on loans payday or otherwise.