Foreign Perspectives

These come under all kinds of different names but basically they’re an advance on your salary.

That means that obviously you need to be in employment to get one and usually for at least three months. You’ll also need a bank account as payment is directly into your bank account. Finally, as they’re effectively an advance on your salary you need to pay them back when your salary next arrives in your account.

Payday loans tend to look as though they’re incredibly expensive when you look at the rate of interest but then that’s calculated on an annual basis and these loans are for less than a month so, yes, the interest rate looks high but the amount actually charged isn’t as bad as you might think.

Cash advances couldn’t be called cheap but are a useful way out to fill in the gap that most of us get towards the end of the month and before the next payday.

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