Although we all do our best to budget to make sure that we have enough money to last the month there are bound to be times when unexpected costs present themselves, such as unexpected bills or emergency repairs. If you have run out of disposable cash when this happens things can become very difficult. For those with poor credit things can be even harder, as there may be no credit card facilities available to help you out.

A payday loan does not involve a credit check, and therefore even those with bad credit can benefit from this type of short term finance. However, you will need to prove your income, have a bank account, and prove your address and identity in the form of utility bills or similar.

You can get the money from your payday loan right away in some cases, or in some cases by the next day, which makes these loans ideal for those that need money fairly quickly. You will find payday loan companies on the high street as well as online.

When it comes to the repayment of your payday loan you will normally be given a date on which date the loan will be reclaimed, and this is usually twenty eight days after you have taken the loan. This may be done via a one off direct debit or standing order, which you will need to set up, or you may have to leave post dated cheques with the lender when you take the money, and these will then be banked on the repayment date. The repayment procedure will depend on the lender.

Payday loans are low level loans, and the amount available to borrow is normally up to ?1000. The actual amount that you will be able to borrow will depend on your income along with other factors. Although you are supposed to repay the loan within the stated timeframe, usually twenty eighty days, many payday loan companies will allow you to roll over the loan, which means that you can extend the repayment of part of all of the loan for a further month. However, you will have to pay the interest charges to roll over your loan. and this could prove to be a costly excercise. It is advisable that you can clear this expensive credit type balance as soon as possible before interest payments become too large and unmanageable.

The interest charged on payday loans is generally a flat rate, and equates to around ?10 per ?100 borrowed, which is taken out of the amount that you receive when you take your loan. For example, if you borrow ?400 you will pay ?40 in interest (based on a rate of ?10 per ?100 borrowed), and this will be taken out of the loan so you will actually receive ?260. If you then want to roll over the loan you will have to pay the interest of ?40 again.