The popularity of payday loans online has increased dramatically over the past couple of years as more companies offer payday services and UK consumers experience more frequent cash flow problems. As the Times highlighted this week, Brits have collectively seen an alarming fall in wealth over the past year or so:

The wealth of households in Britain fell by 17% last year, the biggest drop for at least 40 years, as house prices slumped and the stock market plunged.

The fall of more than a sixth in household wealth – measured by the value of housing and the investments people have in pensions, Isas (individual savings accounts) and other assets – is the biggest in cash terms on record.

It means that each household is poorer, on average, by tens of thousands of pounds. The drop in wealth last year is equivalent to £20,000 for each individual in Britain and £45,000 for each household.

But although payday loans provide some people with a welcome lifeline when there’s a sudden hole in their finances, they should be approached with extreme caution. Many lenders make claims about same day cash deposits that simply don’t stack up in reality and most charge fixed fees per £100, regardless of the length of loan.

The payday loans trap

Most worryingly, some less scrupulous payday lenders base their service around keeping you in debt and will automatically roll your balance from month to month unless you actively take steps to repay it. And that’s where the cost of a payday loan can really add up. They can offer a valid, last resort solution if treated with respect, but fail to repay one on time at your peril!

Flexible cash advance from Wonga

A Wonga cash advance online isn’t tied to your payday and can be taken for anything between five and 30 days. Rather than rigid payday fees, we charge interest by the day so you can control the the cost by selecting the exact amount of cash you need and the specific number of days you want it for.

We also carry out a sophisticated credit check as part of our application process, whereas many payday loans are advertised on the basis there isn’t one. This may sound like a plus if you’ve got a poor credit record, but using Wonga responsibly can actually help improve your credit rating over time, as we report all timely repayments back to the credit bureaus.

So if you need some emergency cash and are considering looking for payday loans online, check out Wonga first and see for yourself how flexible we are. If you like what you see, it’s also worth knowing we’re the fastest lender in the UK, providing cash deposits within minutes around the clock.

TYPICAL 2698% APR

This entry was posted on Tuesday, March 17th, 2009 at 12:34 pm