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.

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