If you've been living under a rock for the past five years, you might not be familiar with the huge increase in short term cash loans lenders springing up throughout the United Kingdom. Originally gaining popularity in the poorer areas of the United States of America, payday and short-term loans have quickly become big business for those behind it.
Offering a short-term line of credit to those who are not eligible for loans from regular financial institutions, these businesses make their money from huge interest rates - often 25% and higher - over the short course of a loan's life.
In most cases, they offer customers loans to bridge the gap between their paydays, should something come up that needs urgent financial attention. The amounts offered by these companies are normally quite low, ranging from £50 to £500, but rarely any higher, so people tend to think that any money they take from them can be repaid relatively easily.
While that may be true in the majority of cases, the problem with these payday or short-term loans is that, with the interest rates so high, anyone who misses a repayment date will often find themselves ending up in worse financial trouble than they were to begin with, and given that these places don't conduct a credit check, that can spell bad news for the person involved.
Out of all the payday or short-term loans businesses in the United Kingdom, the following are the most highly rated: www.paydayuk.co.uk, www.paydayexpress.co.uk, www.paydayfinancial.co.uk and www.uncle-buck.co.uk.