Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.

Jul 24, 2018

Highlighting The Major Benefits And Risks Of Using Payday Loans

Having to live paycheck to paycheck is never exciting, fun, or stress-free – but unfortunately the overwhelming majority of people in the working class today have to contend with this kind of lifestyle, whether they like it or not.

According to different reports, anywhere between 70% and 80% of the workforce today is living paycheck to paycheck, week to week, and cannot weather the storm that a £500 emergency financial obligation would bring up without having to make some very serious decisions.

It’s incredible to think that such a small amount of money could derail so many people’s lifestyle, but that’s the long and short of it.

Thankfully though, with the help of short-term loans and payday loans from organisations like Cash Kitty, that headache and hassle can be avoided almost entirely – even if your credit is anything less than picture-perfect.

Below we highlight different benefits (and some risks) associated with payday loans. You want to make sure that you know exactly what you are diving into.

Benefits

Right out of the gate, the speed in which you are able to both apply for and get approved for payday loans is quite unlike any of the other more traditional lending opportunities out there.

As we mentioned above, organizations like Cash Kitty really do not care all that much – if at all – about your previous history with credit. As long as you have a verifiable income these organizations are more than happy to help your financial obligations with short-term loans.

Secondly, you won’t have to worry about ponying up any collateral to take advantage of these loans. The only thing you have to do is prove that you have a steady paycheck coming in and you are good to go.

Finally, you’ll be able to get your hands on the cash that you have been approved for. There aren’t any hoops to jump through and you’ll have no real limitations placed on how you use the money that you have received this lending opportunity.

Risks

You will not be able to take advantage of short-term loans and payday loans from companies like Cash Kitty for long-term financial obligations. These loans are designed for short-term fixes only, and that’s really something that you’re going to have to get comfortable with.

Secondly, because these loans do not require you to put up any collateral and will not need a solid credit score from you to be approved, they almost always have high interest rates associated with them. That’s something that you are going to have to recognize and understand before you sign on the dotted line.

Finally, even though payday loans and short-term loans from services like Cash Kitty do not take your credit score in consideration when they approve your loan, they may impact your credit score negatively if you do not meet the terms of your loan going forward.

On the other hand, they can also help you improve your credit score should you meet the loan terms perfectly – and that’s just another reason to consider moving operations like Cash Kitty.

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