Paydayloans may be summarised in just a word or two. The principle is so straight forward and simple that little is needed in the way of formal or legalistic fine-print and the whole application process may be concluded in a matter of minutes:

The principle

Paydayloans might be said to roll up a number of general principles into just the one word. Typically, they are:

cash advances – essentially, they represent an advance of the pay you are about to receive;

short-term – the cash advance is repaid in a matter of weeks, when your next pay cheque, or the one after that, arrives;

small – the amount borrowed is generally relatively modest (a matter or a few hundred pounds, usually not exceeding £500);

online – it is often possible to apply for the cash advance entirely online from websites such as paydayloansuk.org.uk avoiding time-consuming paperwork, faxes and tiresome calls to call centres;

fast – direct payday loans are typically very easy to set up, with some lenders such as paydayloansuk.org.uk aiming to get the money into your bank account as soon as possible after your application has been approved.

Safe borrowing

because you are borrowing what you might consider to be small amount of money over a short period of time, with the security of your next pay cheque to make the repayment, this might be considered a particularly safe form of raising additional cash;

the very nature of the cash advance makes it unsuitable for long-term borrowing or for rolling forward the amount outstanding;

the total amount of interest payable on a small, short-term loan may also in some cases be significantly more cost-efficient than that attracted by a larger sum borrowed over a much longer period of time;

budgeting for the repayment is typically made easier by your agreeing to set up a direct debit to coincide with the receipt of your salary – or this may be mandatory with some providers;

nevertheless, it is important to keep in mind your commitment to repaying paydayloans in full, on the due date. This includes making sure that there are sufficient funds in your bank account to cover the direct debit instruction or post dated cheque for the repayment.