{"id":27535,"date":"2024-09-30T11:19:58","date_gmt":"2024-09-30T11:19:58","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=27535"},"modified":"2024-09-30T11:20:00","modified_gmt":"2024-09-30T11:20:00","slug":"advantages-and-disadvantages-of-payday-loans","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/","title":{"rendered":"11 Advantages and Disadvantages of Payday Loans"},"content":{"rendered":"\n<p><strong>Payday loans used to be popular in the UK.<\/strong> Many individuals used to look towards them as a solution for their financial needs. Many payday lenders have gone out of the market and stopped lending. There are still a few who lend these loans but in a different and improvised manner.<\/p>\n\n\n\n<p>However, there are both advantages and disadvantages to taking out a payday loan. And it&#8217;s important to understand these before making a decision.<\/p>\n\n\n\n<p><strong>In this article, we will explore the pros and cons of payday loans in the UK.<\/strong> And even include the alternatives to payday loans.<\/p>\n\n\n\n<p><strong>Key takeaways<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Payday loans<\/a><\/strong> offer quick access to cash. But they come with very high interest rates and the risk of falling into a debt cycle.<\/li>\n\n\n\n<li>Credit unions and traditional lenders offer more affordable options. <strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Short term loans<\/a><\/strong>, bad credit loans, instalment loans may be more suitable for certain individuals.<\/li>\n\n\n\n<li>Payday loans can negatively impact credit scores, if not repaid on time.<\/li>\n<\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-67d8a2c457e0f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-67d8a2c457e0f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#understanding_about_payday_loans\" title=\"Understanding about payday loans\">Understanding about payday loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#payday_loans_advantages\" title=\"Payday loans advantages\">Payday loans advantages<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#1_quick_access_to_funds\" title=\"1. Quick access to funds\">1. Quick access to funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#2_no_credit_check_in_some_cases\" title=\"2. No credit check (in some cases)\">2. No credit check (in some cases)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#3_suitable_for_short-term_emergencies\" title=\"3. Suitable for short-term emergencies\">3. Suitable for short-term emergencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#4_convenient_and_easy_online_applications\" title=\"4. Convenient and easy online applications\">4. Convenient and easy online applications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#5_fast_approval\" title=\"5. Fast approval\">5. Fast approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#6_no_collateral_required\" title=\"6. No collateral required\">6. No collateral required<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#payday_loan_disadvantages\" title=\"Payday loan disadvantages\">Payday loan disadvantages<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#1_high_interest_rates\" title=\"1. High interest rates\">1. High interest rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#2_short_repayment_periods\" title=\"2. Short repayment periods\">2. Short repayment periods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#3_risk_of_debt_trap\" title=\"3. Risk of debt trap\">3. Risk of debt trap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#4_may_lead_to_multiple_loan_cycles\" title=\"4. May lead to multiple loan cycles\">4. May lead to multiple loan cycles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#5_impact_on_credit_score\" title=\"5. Impact on credit score\">5. Impact on credit score<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#exploring_alternatives_options\" title=\"Exploring alternatives options\">Exploring alternatives options<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#1_short_term_loans\" title=\"1. Short term loans\">1. Short term loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#2_bad_credit_loans\" title=\"2. Bad credit loans\">2. Bad credit loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#3_instalment_loans\" title=\"3. Instalment loans\">3. Instalment loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#4_credit_unions\" title=\"4. Credit unions\">4. Credit unions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#5_traditional_lenders\" title=\"5. Traditional lenders\">5. Traditional lenders<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/#final_words\" title=\"Final words\">Final words<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"understanding_about_payday_loans\"><\/span><strong>Understanding about payday loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-about-payday-loans.jpg\" alt=\"Understanding about payday loans\" class=\"wp-image-27537\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-about-payday-loans.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-about-payday-loans-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-about-payday-loans-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-about-payday-loans-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p>A payday loan is a short term loan designed to provide borrowers with quick access to cash. Payday lenders typically offer small loan amounts, usually up to \u00a31,000. These must be repaid within a few weeks or months, depending on the terms of the loan.<\/p>\n\n\n\n<p><strong>The key players in a payday loan transaction are the lenders and the payday loan borrowers.<\/strong><\/p>\n\n\n\n<p>Payday lenders may operate online or through storefront locations. They also require borrowers to have a valid bank account. Borrowers must provide personal information. This includes their name, address, and employment details. Also, an authorisation for the lender to access their bank account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"payday_loans_advantages\"><\/span><strong>Payday loans advantages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_quick_access_to_funds\"><\/span><strong>1. Quick access to funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Payday loans offer quick access to cash. This makes them a popular choice for individuals facing emergency situations. In truth, you can apply to receive a payday loan online. And have the money loaded into your bank account within 24 hours.<\/p>\n\n\n\n<p>Here is a detailed guide on <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-get-accepted-for-a-payday-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>how to get accepted for a payday loan<\/strong><\/a>. Do give it a read before applying for one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_no_credit_check_in_some_cases\"><\/span><strong>2. No credit check (in some cases)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/payday-loans-no-credit-check\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>payday lenders may not run a credit check<\/strong><\/a> to approve loans. This can make it a good option for individuals who have been denied loans by traditional lenders. This is due to poor credit or no credit report or history.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_suitable_for_short-term_emergencies\"><\/span><strong>3. Suitable for short-term emergencies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Payday loans can be advantageous for individuals who only need a small amount of money to cover a temporary financial gap. Once the loan amount is repaid, there&#8217;s no ongoing debt, unlike long term loans that can take years to settle<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_convenient_and_easy_online_applications\"><\/span><strong>4. Convenient and easy online applications<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One major advantage of payday loans is the ease and convenience of the application process. Borrowers can apply online. Without the need for any paperwork or in-person meetings with lenders. This can save time and reduce stress for individuals in urgent need of funds.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_fast_approval\"><\/span><strong>5. Fast approval<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In general, payday loans are known for their quick approval times compared to traditional bank loans. If you apply during the lender&#8217;s business hours, you are more likely to receive a quicker response.<\/p>\n\n\n\n<p>Some lenders offer 24\/7 online applications, which can expedite the process even further.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_no_collateral_required\"><\/span><strong>6. No collateral required<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike secured loans that require borrowers to pledge assets as collateral, payday loans are unsecured. This means borrowers don&#8217;t have to risk losing their valuable possessions. This includes a car or property if they are unable to repay the loan.<\/p>\n\n\n\n<p>Overall, payday loans can be a helpful solution for individuals facing urgent financial needs. However, it is important to carefully consider the potential risks and drawbacks. Like high interest rates, and the risk of falling into a debt cycle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"payday_loan_disadvantages\"><\/span><strong>Payday loan disadvantages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_high_interest_rates\"><\/span><strong>1. High interest rates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Payday loans are known for their high-interest rates.<\/strong> It is significantly higher than those of traditional loans or credit cards. Borrowers may not fully understand the cost of borrowing. This can lead to significant financial strain and difficulty repaying the loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_short_repayment_periods\"><\/span><strong>2. Short repayment periods<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Payday loans usually have a short repayment period.<\/strong> This is often due on the borrower&#8217;s next payday, which is typically within two to four weeks. This short time frame to repay the loan can be challenging for some borrowers. Which can lead to a high risk of default and rollovers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_risk_of_debt_trap\"><\/span><strong>3. Risk of debt trap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>One of the most significant disadvantages is the potential for a debt cycle.<\/strong> High-interest rates, combined with the short repayment term, can make it difficult for borrowers to repay the loan on time, leading to further borrowing and mounting debt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_may_lead_to_multiple_loan_cycles\"><\/span><strong>4. May lead to multiple loan cycles<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If payday borrowers are unable to repay the loan on the due date, they may be tempted to roll over. Extend the loan. Or even go for <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-many-payday-loans-can-you-have-at-once\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>multiple payday loans<\/strong><\/a>. However, doing so incurs additional fees. And the borrower can find themselves trapped in a cycle of debt. Here the loan keeps on getting extended, leading to even higher costs over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_impact_on_credit_score\"><\/span><strong>5. Impact on credit score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Taking payday loans can negatively affect your credit score. Failing to repay your loan on time can lower down your credit rating. Even if you repay payday loans on time, they might not necessarily boost your credit score. These loans often go unreported to credit bureaus.<\/p>\n\n\n\n<p>This means that your responsible repayment behaviour might not be reflected in your credit history. As a result, your efforts may not lead to an improved credit rating.<\/p>\n\n\n\n<p>It is essential to understand the risks associated with payday loans. And carefully consider whether they are the right option for your financial situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"exploring_alternatives_options\"><\/span><strong>Exploring alternatives options<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_short_term_loans\"><\/span><strong>1. Short term loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A short term loan is a type of borrowing that provides quick access to a small amount of money for a short period. These loans are typically designed to be repaid within a few weeks or months, rather than over an extended period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_bad_credit_loans\"><\/span><strong>2. Bad credit loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/bad-credit-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Bad credit loans<\/strong><\/a> are loans specifically designed for individuals with poor credit histories. Or even with low credit scores. These loans offer opportunities for people with damaged credit to borrow money. But they often come with higher interest rates and less favourable terms than loans offered to those with good credit.<\/p>\n\n\n\n<p>Bad credit loans can be both secured (requiring collateral) and unsecured (without collateral). They are commonly used to consolidate debts, cover emergencies, or rebuild credit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_instalment_loans\"><\/span><strong>3. Instalment loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/instalment-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Instalment loans<\/strong><\/a> are another alternative to payday loans. These loans allow you to borrow a set amount of money and repay it in regular instalments over a period of several months.<\/p>\n\n\n\n<p>These loans may have lower interest rates than payday loans and offer more manageable repayment terms. However, they may still have high APRs and can be difficult to obtain if you have bad credit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_credit_unions\"><\/span><strong>4. Credit unions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Credit unions are non-profit financial organisations that offer a range of banking services, including loans. Unlike payday lenders, credit union is owned by their members and focuses on providing affordable financial services.<\/p>\n\n\n\n<p>Credit unions offer unsecured loans that typically have much lower interest rates than payday loans. They also offer flexible repayment terms and are more willing to work with borrowers who have poor credit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_traditional_lenders\"><\/span><strong>5. Traditional lenders<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you have a good credit score, you may be able to borrow from a traditional lender, such as a bank or building society. Traditional loans generally have lower interest rates than payday loans and may offer more favourable repayment terms.<\/p>\n\n\n\n<p>However, traditional lenders are often more selective in their lending practices and may require a lengthy application process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"final_words\"><\/span><strong>Final words<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While payday loans can be a useful tool for accessing cash quickly, they come with significant risks. It is important to carefully weigh the pros and cons before borrowing money through a payday lender.<\/p>\n\n\n\n<p>Consider your financial situation, explore other loan options, beware of borrowing multiple payday loans, high fees, and avoid defaulting on your loan.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> The information given above is provided for information purpose only. This is not financial advice.<\/p>\n\n\n\n<p><strong>Related guides:<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-get-out-of-payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How To Get Out of Payday Loans<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/do-payday-loans-affect-your-credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Do Payday Loans Affect Your Credit Score<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/are-payday-loans-bad\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Why Should You Avoid Payday Loans<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-should-you-look-for-in-payday-loans-direct-lenders\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>What Should You Look for In Payday Loans Direct Lenders<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payday loans used to be popular in the UK. Many individuals used to look towards them as a solution for their financial needs. Many payday lenders have gone out of the market and stopped lending. There are still a few who lend these loans but in a different and improvised manner. However, there are both [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":27538,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-27535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27535"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=27535"}],"version-history":[{"count":4,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27535\/revisions"}],"predecessor-version":[{"id":28016,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27535\/revisions\/28016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/27538"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=27535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=27535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=27535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}