It’s mid-month, and you’re hit with a hefty electricity bill, unbudgeted for and most definitely unexpected and you’re stuck wondering how you’re going to cover that bill with a pay check that won’t stretch far enough. This is when you might consider a quick payday loan as an easy solution to a short term financial issue.

The world of payday lending is stepping out of its darker past and into a much more positive space, helped by:

  • the introduction of new lending regulations
  • a higher percentage of customers having a much better borrowing experience overall

But even with this positive shift in the payday lending industry, many customers still worry about the possibility of getting into debt with the use of payday loans.

What you need to think about

Whilst many customers can attest to the benefits of payday loans and how helpful they have been for them, many others still worry about getting into debt if they use this facility and we get it. Taking out ANY loan is an important decision to make and you are accountable for your actions from the moment the loan application is made, to how you spend the money and making sure it’s repaid on time. If you’re at a stage where you are thinking about taking out a payday loan but you’re concerned about what this could mean for your future finances, take some time to think about some of the points below before taking the plunge.

  • You need to be a responsible borrower and only apply for loans you can afford to repay

Payday loans are a great help for people that use them responsibly but can become a problem if you fail to consider important factors such as your current financial situation and how you manage your money. If you’re not in the best financial position and are already struggling with your finances, a payday loan might not be the answer for you right now. Consider alternative borrowing options that carry less risk, such as asking a family member or a friend who may be willing to help you out, before you think about getting a payday loan.

  • Be honest in your application form and be honest with yourself

Are you really earning £2,900 every month or did you bump up your wage on the application form thinking you’d be doing yourself a favour? It’s easy to add a couple of imaginary 100s to your stated income in the hope that this will increase your chances of acceptance but if you are approved for a loan that you can’t actually afford, you’re just setting yourself up for an unnecessarily difficult time financially. Lenders need to understand your actual financial situation in order to assess your application, so remember, honesty is the best policy.

  • You must remember that once you receive the loan, you will have to pay that money back, including any interest that has accrued on the loan.

Worried woman reading a paper

Lenders don’t ask you for your income and expenditure just for the sake of it – they have a duty to lend to customers responsibly, and it helps them assess your circumstances and decide whether or not the loan will be affordable for you. In other words, they’re trying to help you believe it or not! It does neither you nor the lender any favours if you can’t afford to repay your loan. Lenders also take a number of other factors into consideration before approving your application for a payday loan so pretending you earn more won’t necessarily help you.

Remember that YOU are responsible for the information you provide and therefore responsible for the consequences that may come of not repaying your loan on time. If you cannot afford to repay a loan (with the interest) then DON’T apply, and if you’re not sure, seek some guidance from a free money advice service like StepChange, National Debt Line, or your local Citizens Advice, before doing anything.

  • Don’t just take out the loan and forget about it – stick to your budget

Many well-meaning and honest borrowers find themselves stuck in a financial rut when they forget about the loan they took out 4 weeks ago, or when they realise that the extra 50 quid that went on trainers should have gone towards paying their loan on time. We get it – it happens, but you should avoid this type of situation at all costs. If it helps, set yourself a couple of reminders or put it in your calendar – that way you’re less likely to forget. More importantly, keep a handle on your spending – there are plenty of creative and useful tips online to help you get saving if you’re truly stumped.

Remember you have to repay the original loan amount you borrowed PLUS whatever interest has accrued on the loan, so make sure you leave enough funds to repay the full balance on time. If you get paid sooner than you thought you would and can repay your loan early, do it.

  • Let the lender know if you are struggling as they will try to help you avoid further charges

Circumstances can change after taking out your loan, and that’s okay. However the first step to taking responsibility for your situation is letting the lender know. The lender can’t do anything to help you if you don’t tell them that you’re struggling. Leaving your loan unpaid and not letting the lender know that you are having difficulty repaying, just means that your loan ends up growing in interest and your credit file could become affected if the loan is left unpaid for too long. There are also plenty of free debt help services that you can contact if you are really concerned about your financial circumstances.

  • Only use payday loans when the costs you are covering are essential

Don’t take out a payday loan if you aren’t sure you need it. Payday loans should not be seen as an easy way to supplement your income every month or to buy non-essential items you can really live without. It’s far too easy to over-exert yourself financially, especially when you haven’t accounted for essential expenditures or unexpected costs that may arise during the month. It’s definitely not worth risking a late payment on your loan just because you wanted a new pair of jeans this month.

Payday loans are most useful for emergency situations or for essential living costs such as for an unexpected bill, car repairs or travel costs, and so are therefore typically available 24/7 night and day. You usually can receive the funds on the same day you apply, so you don’t need to take one out ‘just in case’.

  • Payday loans affect your credit file

Credit report with fair credit score

It’s no secret that using any form of credit leaves a footprint on your credit file, but the type of print it leaves behind is what you should think about. As with any other form of credit, you want to make sure that your loan is paid on time to prevent any missed payments or defaults from being reported on your credit file. Missed payments and defaults really affect your credit score and can potentially hurt your future approval for ANY other type of credit. If however your credit score is not in the best shape, there are some companies who offer loans that are specifically tailored for people with bad credit or no credit history at all, so it’s a good idea to check your score and see where you stand before applying for just any payday loan.


  • You will usually get a decision on your loan application straightaway and the funds follow shortly after if you are approved.
  • Payday loans can sometimes be a cheaper alternative to an unplanned overdraft with your bank, as some banks can charge up to £8 per day if you exceed your overdraft limit!
  • You don’t need to have the perfect credit score to be accepted for a payday loan.
  • Generally, you can apply for a payday loan at any time of the day as most applications are submitted online and payments are distributed 24/7 – so you’re not left hanging no matter the situation.
  • The application process is quick and simple!
  • When used responsibly they can be a useful helping hand in a time of financial need.


  • Payday loans can really affect your credit score if you don’t repay them on time or fail to repay at all.
  • Payday loans are for relatively small amounts, so don’t forget about them if you have larger debts or fail to properly account for the payment plus the interest on your next payday.
  • If you’re struggling financially, a payday loan could make an already bad situation worse, so consider alternative options before you think about going for a payday loan.

Here at we offer quick, hassle-free 30 day AND multi-month loans, designed to help you out in your time of need.

….And if you’re STILL not sure, follow this link to see how our payday loans compare to others on Clear and Fair!