Will a Payday Loan be a Good Choice to Cover my Tax Bill?

When you tax bill arrives, it can be quite a shock to see how much it is and how little time you have to pay the money. You might think that you will not be able to pay it, but with tax, you have no choice but to pay it and it isn’t normally something that you can negotiate small regular payments for. You usually have to just pay it when they say it is due. This means that if you do not have the money, you may find that your only option is to borrow money. There might be a selection of borrowing options available to you but a payday loan has advantages which might make it the most suitable option for you.

  • No credit check Having no credit check means that even if you have a poor credit record you will still be able to take out the loan. This means that there are even borrowing options for those that previously thought there were none. This is because generally a lender will do a credit check and not lend money to anyone that has a poor credit record. However, payday loans were set up to help those that have a poor credit record so that they could borrow money as well. This means that they do not do a credit check. Therefore, the loan could be suitable for most people.
  • Speedy to organise A payday loan is also very quick to organise. This is because of several factors. Firstly, the lenders are often staffed for 24 hours a day and 7 days a week, so whenever you call they will be able to start helping you. They also get things processed very quickly and it is possible to get the money that you need within a few hours. This means that if you have left things to the last minute and you need the money extremely quickly to avoid the fine of paying your tax bill late, this could be a big advantage for you.
  • Simple to apply for Some loans can be very complex with all sorts of paperwork. A payday loan is very simple to organise as you only have to give the minimum amount of information. You may even be able to apply online or over the telephone and therefore will not always even have to fill in any paperwork at all. This can be a great advantage for those that find doing this sort of thing to be a big hassle.
  • Quick to repay You will need to repay all of the payday loan in one lump sum when you next get paid. This means that the loan will not last more that a few weeks normally. This is great news for anyone that does not like being in debt as it will not last very long. There will just be a short amount of time when you owe money and then you will need to repay it. It is obviously important thought, to make sure that you will have the money available to do this. This should be fine as long as you make sure that you borrow an amount of money that you can afford. It is wise to find out how much you will be expected to repay so that you can check your bank details to see whether you will have enough money available to do so. It is well worth taking the time to do this because if you cannot repay you will have to pay extra charges.

There are a few things that you need to bear in mind when deciding whether to use a payday loan for your tax bill. Firstly, you may not be able to borrow enough money form one lender. Most payday lenders will lend up to £1,000 and so you may find that you will be able to get enough, it all depends on how much you bill is. It is worth knowing though, that if you are using a lender for the first time they may choose to only lend you a small amount of money. They may want you to prove that you can repay on time before they are willing to lend larger amounts. You will have to check with different lenders to see if this is the case. Also, the lump sum payment may be tricky for some people. Although it means that you can get out of debt more quickly, some people might prefer to repay in instalments. If this is the case then a different type of loan might be more suitable, although it is likely to take longer to arrange and require a credit check. It is certainly worth considering a payday loan though, but make sure that you compare it with other options and that you compare payday lenders so that you can find the one that offers the best value for money.

Can I use a Payday Loan to pay my Rent?

If you are struggling to find enough money to pay your rent then you may be looking around for options to help you. It might be that one consideration could be to borrow the money. This could be a reasonable idea, but you will need to find the right type of borrowing. If you are considering a payday loan, then it could be the right option, but it depends on a few factors.

  • Are you a UK resident and over 18 with a bank account and regular income? There are few basic requirements that you need to have in order to be able to qualify for a payday loan. There are a lot less than with many other types of loan, for example no credit check is done so you do not need to worry about whether you have a good enough credit record. However, you will need to be a UK resident and over 18 to fulfil legal requirements and you will have to provide proof of address. You will need a bank account so that the payday lender can set up a direct debit in order to collect the payment when it is due. You will also need to be able to show that you have a regular income which would normally be a job but benefits or pension might be enough to qualify depending on the lender. The amount of income will not be that relevant you just need to show that you will have enough to repay the loan and let the lender know when you get paid so that they can set up the direct debit to repay the loan on that day.
  • Do you need less than £1,000? It is important to know that a payday lender will not normally lend more that £1,000. This means that if you need more than this then it is unlikely that you will be able to borrow it. You also need to think about the fact that payday lenders may not lend large sums of money to first time borrowers. It is very possible that they will prefer to lend a smaller amount of money first to see whether you repay it successfully before they lend you a larger amount. This may vary between lenders and so you may have to do some research to find out which lenders are more likely to let you borrow the amount that you need. If you cannot borrow the amount that you need, then you may need to come up with an alternative plan.
  • Will you be able to repay it when you next get paid? You will repay all of the payday loan when you next get paid. Therefore, you need to be sure that this is something that you will be able to afford. In order to find out, you will need to do some calculations. Firstly, you will need to know exactly how much you will need to repay. To find this out you will be able to use the calculator on the lender’s website. You can enter the details of how much you want to borrow and how long for and you will be able to see exactly how much you will have to repay. If you cannot find the calculator then contact their customer services department as they will be able to help you with this. Then you will need to take a look at your bank statements so that you can check to see if you will have enough money to cover it. Think about where you might be able to reduce your spending so that you are sure that you will be able to afford it. You might be able to earn more money as well, which could be very helpful. It is also good to make sure that you will be able to manage all of your other bills as well for the following month. Check how much you need and whether you will have enough.
  • Is the money needed regularly or just once? Whether a payday loan is suitable to help you with your rent can come down to whether you need it just once or more often. If you are just having a tricky month and need some help then it can be very useful as long as you are confident that you will be able to repay it. However, if you are struggling each month with the payments then a payday loan will not help. You will need to get one every month and then pay it off and find more money. It could be better in this situation to budget harder so you can manage the rent or consider renting a cheaper place. Getting a better paid job could also be an option that could help you. If you have a plan to help for the future, a payday loan might be a temporary solution.