When does a bridging loan turn into a payday cash loan?

A bridge loan is a short term loan usually no longer than a year. The aim of a bridge loan or bridiging loan is to give the borrower the much needed cash flow until they receive funding. People use bridge loans in numerous financial situations, but recently there has been a shift in borrowers and have started using refering to payday lending as short term bridging loans.

In effect, payday cash loans can be seen as a variant of a bridge loan - althougth they offer much sorter terms, (usually up to 30 days) they serve the same purpose as a bridging loan which is to give a helping hand to meet current financial obligations until the borrower’s next payday or funding.

Brief overview on a bridge loan

• A bridging loan is a short-term loan that is taken out until permantent financing can be arranged, this type of loan is often also called swing loan.
• Borrowers usually take a bridge loan when purchasing a commercial property, land or residential property, sometimes it can also be used for auction purchases.
• Bridge loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. Bridge loan interest rates are usually 12-15%, with typical terms of up to 3 years.

UK bridging loans vary from US bridging loans, here is a quick UK bridging guide to help you through each step.

Brief overview on a payday cash loans

To qualify for a payday cash loan the borrower needs to be:

• a UK resident
• over age 18
• have a valid UK Debit card and a UK bank account
• have a steady income

Reputable payday cash lenders can offer flexible, short-term loans starting from £200, and up to £1000. Repayment is within 30 days or less. Some payday cash loan providers may allow borrowers to determine the length of loan and will charge a reasonable interest rate based on the length of payday cash loan. Typically, a short term loan should be settled on payday. We strongly recommend customers settle payday loans quickly.

If you need to get money fast, just click to apply for a payday cash loan now!

Is taking a payday loan still embarrassing?

A few years back, I would have never thought of getting a short term loan, never mind a payday loan, this was for people who couldn’t manage their finances- I hear my mum say. Nowadays a short term loan is not something to be ashamed off; people take loans to buy a car, to renovate their kitchen, to book a holiday etc.

Why have payday loans take up increased?

Cost of living is an important factor on the increase of payday loans, people’s salaries are not covering unexpected expenses such as a big gas bill or the need to fix the car and they’ll use a payday loan to bridge the gap between now and their next payday. Take myself as an example, I know for a fact that in June I have got extra expenses: contents insurance renewal, dog insurance renewal, gas and electricity bills - these are one off expenses that overstretch my financial situation, therefore getting a payday loan is a good option to help me until payday.

All depends on the urgency

The choice of taking a payday loan sits closely with how urgent you need to pay a bill or whether you have to paint that room - the question is: can you avoid taking a payday loan? Some things are unavoidable - not paying a bill will incur in extra costs, however small decoration projects or getting that special Prada bag are things that can wait.

If you need to get money fast, just click to apply for a payday loan now!

Thousands of UK shoppers have overused their credit cards during Christmas and this week their first credit card bills are landing on their doorstep. Some people will be dreading to check their bills, others will wonder how they can pay off their credit card balances.

There are many solutions to clearing your credit card debt in a way where one avoids piling up more debt through interest charge. A recent article by The Guardian shows ways on how to manage your credit card debt as well as clever ways to reduce your outstanding debt. Here is an extract:

Depending on your credit rating, you could switch your existing balance on to a 0% balance transfer credit card and pay off whatever you can within the interest- free period 

Interest free cards can be one solution to cut the amount owed to credit cards but not the only one, as the article continues:

If your balance is particularly high and you really are at your credit card limit, then it may be worth taking a loan to clear your balance.

Debt consolidation can also have far reaching benefits. Consolidating your debts in to one easy monthly repayment each month will not only lower your outgoings but also improve your credit score and it could just be the first step towards a clean credit sheet. Remember then to cut up your credit card so avoind being tempted into continuing to spend on it.