More people in the UK are using Cashfloat expedite payday loans to avoid an unarranged overdraft
Cashfloat dynamic payday loans as an instant alternative to a bank overdraft
We’ve all been there. A month with higher expenses than usual, a couple of big purchases that couldn’t be put off, that bonus that didn’t come… and suddenly, you’re in the red. Help. You just need a quick cash injection to stop your bank from piling on those hefty charges for unauthorised overdraft. Wages come in a week… but what should you do until then? You need a solution, and quickly.
Financial Moments – Expedite the lending process
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Have you ever been in this boat?
Ah, there’s nothing like the beach. Stretched out on the sand under the warm glow of the Sun, with the gentle lapping of the waves in the background… yes, this is paradise. A well-deserved break from hard work.
Your phone beeps. Come on, you’re on holiday! You take a quick glance at the message and… oh. Oh no. Not good. Your bank account has gone into overdraft. Your bills were a bit higher this month – but whatever the reason, if you don’t get more money into your account very soon, you’ll be hit with all sorts of fees and charges, probably about £20-50.
You slowly lick your ice cream as you ponder your options. You really don’t want to spend your last few days on the beach thinking about those charges piling up, but what choice do you have? Should you take out a payday loan to cover the debt? Will you save money in the long run?
Is a Cashfloat payday loan cheaper than unarranged overdraft?
Consider your situation
You could always borrow money for a week. That way you’ll have something in your account, so it’s not overdrawn. After some research, you discover that borrowing £200 for a week with Cashfloat will cost you a total of £10.92
Is it worth paying £11 to avoid those charges, and to ensure that you can relax and enjoy your holiday?
What alternatives are there to an overdraft?
There may be various less costly options available for you. With each option, research whether your bank offers these services, and be sure you want to choose this option.
Link your regular account to your savings account –
By doing this, your bank will automatically transfer money from your savings account to your current account, once it is overdrawn. There is usually a transfer fee.
Switch banks –
Many mistakenly think that banks won’t let them join if they have bad credit. Many banks will, in fact and it may be worth considering. Some banks offer an interest free overdrafts limit, while others charge enormously high interest rates. Do your research and find the best bank for you.
Take out a payday loan with Cashfloat –
Some banks will be unwilling to give leeway even to a day or two of being overdrawn. If this is the case, a one week loan from Cashfloat may save you paying a higher interest rate from the bank.
Payday loans Vs Unarranged overdraft in the UK. An ongoing debate
Many people debate over this, and it seems that they are both useful financial tools on both sides. A payday loan, if used responsibly, is designed to help with a temporary cash shortage. As you can see from the above scenario, other options may work out to be far more expensive. However, many argue that the interest rates are ridiculously high, and that the borrowers cannot afford the loans. Additionally, they are considered to be the ‘easy way out’. Instead of organising your finances and budgeting carefully, you can just take out a payday loan to cover a big purchase that you can’t really afford.
Is a Payday Loan the Best Way to Avoid Expensive Overdraft Charges?
If you are about to go into overdraft, is a payday loan the correct choice? This depends on a number of factors:
Has this happened before? Is it likely to happen again? If you are habitually running short of money at the end of the month, then you need a long term solution, not a payday loan. It’s time to sit down and work on getting your finances in order. Make a comprehensive list of all your income and expenditures. If you are spending more than you earn, you …
Have you got any other options? Can you borrow from a friend or relative? Could you call up your bank and arrange an overdraft – expensive overdraft is only if it’s unarranged. Learn more about arranged and unarranged overdraft in order to make an informed decision.
Have you read the terms and conditions carefully? In the above example, a Cashfloat payday loan of £200 that is repaid in full after one week will cost a total of £10.92 in interest. Other payday lenders might offer different rates, and remember that the more you borrow, and the longer you borrow the money for, the more interest you will be paying. Check that you will be able to meet all the repayments, and make sure you know what will happen if you don’t. This includes any charges and extra interests that may be charged.
When is a payday loan a good idea?
A payday loan is a good idea when it is cheaper than the other options (such as expensive overdraft charges), when you know that you will be able to pay it back, and – most importantly – when it is purely a one-time solution. If you find yourself in need of a payday loan too often, you need to get your finances back in order.
Elizabeth Redfern is a born and bred Londoner who loves the city life. She is a proud chocoholic who enjoys reading, jogging and eating – especially chocolate! Elizabeth attained a first class degree in Mathematics but chose to make a career out of her real passion, writing. She has published many poems and short stories, but decided to join the Cashfloat educational channel writing team because she is passionate about helping people take care of their finances leaving them free to enjoy the finer points of life – most notably (in her opinion), chocolate!