An Age of Magic

Do you borrow from Peter to pay Paul?

Many people in the United Kingdom are doing just that right now. Well, just have a look at the current economic climate there; they expect over 150,000 house repossessions this year alone due to the situation with the mortgages and people just cannot afford to keep up their repayments. What a sad situation it has come to. And we are not just talking about meeting mortgage payments - what about the everyday bills and the tough job it is to maintain a constant cash flow?

It’s no wonder that the payday loan companies are doing a roaring trade right now; being a relatively new and alternative form of borrowing they obviously suit the circumstances of the average person. You borrow a small amount - up to £750 - no more than that though, and the repayment is debited via your bank account either at the end of a fortnight or a month. The concept of payday loans is not original, being kind of based upon the principals of the pawnbroker, but the interest is usually lower and you can only borrow a relatively small amount of cash and the loan is ’set’ for a short period of time.

One thing though - you really need to be disciplined when opting for this as you could find yourself in the position of needing to defer your repayment. In this case you face additional charges and not only that, but you could find yourself trapped in a nasty cycle. However having said that, if you need a quick loan for an emergency and have your head screwed on right you might find them to be an easy option.

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