Payday & Instalment Loans Compared
Are you looking for a short term financial loan solution? If so then a short term loan could be a possible solution. The market for short term loans is continuously changing and new loan options are becoming available. Two of the most common loans currently available are payday loans and instalment loans.
Payday loans also called payday advances could be considered as a one instalment loan where the loan is repaid in one single repayment usually on your next payday. Payday loans are usually taken out for smaller amounts and should be used to cover emergency expenses such as an unexpected bill or repair cost.
As a payday loan is repaid in one repayment on the next payday it is important to ensure you only borrow an amount you can comfortably afford to repay on your next payday without leaving you struggling for money the following month as well. It is also important to remember that payday loans are for short term financial needs only, so if you have been struggling financially for a longer period then you should seek an alternative solution.
If however your need for some extra money is short term, but you would prefer to pay your loan back over a few months, then maybe an instalment loan is a better option for you. An instalment loan splits the repayment of your loan into instalments and could therefore be considered a multi-repayment loan. Even though the length of the loan term for an Instalment Loan is longer than for a payday loan it is still considered a short term loan and should only be used for short term financial needs.
PaydayUK offers a short term instalment loan with the option to repay your loan in 1 to 5 instalments, repaid over consecutive pay date(s). For information about our charges click here or to find out how to apply click here.