As a result of the current economic situation in the UK a great many people are having to take advantage of instant cash advance loans in order to deal with any short term financial problems that arise in between salary payments. This has come about for many reasons but primarily because there are not too many other alternatives for loans and finance available in the UK. Another reason however is due to the fact that they are effortless to arrange and easy to understand.
A majority of the cash advance loans that are taken out are applied for on a website and paid out within minutes of being applied for. This makes them the best choice when it comes to sorting a short term financial situation of one kind or another. There is no other type of loan available that can be arranged out so speedily with so little hassle. The application process is also very painless, it simply requires the submission of a easy application form, and you receive your decision in minutes.
Payday loans or cash advance loans as they are also known are also very easy to understand, with a great many of the lenders charging a simple fee for every £100 that is borrowed. Which means that you know exactly what the loan is going to cost you right from the outset, even before it is applied for.
As a result of the fact that they are so simple to arrange and pay out they are generally used as a means of sorting short term financial concerns, like emergency car or boiler repairs that have to be dealt with very quickly. They can however be used for any purpose whatsoever, but they are not suited to being used for consolidation purposes as they are for quite small amounts and have to be paid up in full when you next receive your wages.
So how do cash advance loans work?
It really is quite simple; they are pretty small loans for amounts from £50 to £1,000 that are taken out until when you next get paid. They are mainly applied for online but can also be arranged over the telephone however this will generally require that some documents are faxed to the lender before your loan is paid out. If you apply via on online form the whole process can be agreed online and the advance is generally paid out on the same day that it is applied for.
They are also relatively cheap comparatively speaking, having said that if you look at the APR’s that they are obliged to publish you would not believe so. This is because an APR is meant to compare the costs and interest charges over the period of a year yet a short term loan will never last twelve months the longest it will last is 1 month (depending on when you take the loan out). This is for the reason that as the name suggests this type of loan is repaid in full when you next receive your salary. So if you look at the actual cost of borrowing the cash you need compared to any other alternative they are actually very competitively priced.