Is a payday loan suitable instead of a personal loan ?

Feb. 28, 2011 - PRLog -- In these tough economic times it may seem that getting your cheque or payment from your employer is always so far away and the bills just seem to mount up time and again. In the good old days we would simply go to our bank and apply for a personal loan over a period of 3 years or so and that would be it. We would get the cash to buy perhaps a newer car or undertake some home improvements and things would be fine.

However today banks are not lending so readily and although interest rates are at their lowest since records began it can be hard to find the best methods of getting cash to tied us over. And this is where the payday lenders have carved out a new market, especially in the UK where a few years ago they were unheard of.

So just what is a payday loan ? It simply means a way to get a small amount of emergency cash to tied a person over until the next payday. This is not a substitute for good financial management not a method to continue this way forever and a day. It is meant as a short term solution if you need to get additional monies to pay unexpected bills. All the main lenders issuing payday loans require you to repay the loan when you next get paid yourself so the terms of these types of loans are usually a maximum of 4 weeks.

Of course most lenders allow you to default until the next payday but the charges and interest will likely rocket and you are best to repay as your credit rating may also be affected if you default.

A new site helps you through the mire of the payday loan industry and can be found at http://www.instantpaydayloans.co.uk where you will get reviews of the lenders that are in the UK together with the latest rates and offers.

"We are trying as much as possible to be transparent in this industry" says Johnny Smith who founded and operates the site. "People may be put off by the apparent high interest rates, but these are extremely short term loans and lenders charges are a fixed amount for every £100 borrowed rather than a percentage per year"

These types of loans are really for emergencies only but can play an important role in ensuring that people don't get their utilities cut simply because they can not afford to pay say £80 this month in arrears. We hope people make use of the site and are able to get the right cash advance for their circumstances.

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Information on short term unsecured payday loans at http://www.instantpaydayloans.co.uk where you will find the best rates available for these types of emergency loans