According to a rule of thumb, payday lenders should not be providing anyone with more than one payday loan at any given time. This would not only not be in the spirit of the industry, but it would also not be in the interests of the borrower. It goes against the very design of the payday loan, which is a short-term loan to boost finances rather than a deep financial need. If you cannot get enough cash for your needs in a single payday loan, then you should really be considering other kinds of credit to help you.
However, there have been many cases where people have managed to take out a number of payday loans at one time. One woman in 2014 was able to take out eight loans at one time, running up £3,000 debt. She stated that she was very shocked when ‘they kept saying yes’. Nowadays, the rules are a lot stricter and lenders will check out whether you have any other credit open to prevent such things occurring.
Whilst it may be possible to deceive your way into having more than one payday loan at one time, Payday bad credit strongly advises against it, as would other experts. Here are some reasons why you should take this advice and stick to one loan at a time.
Having multiple loans can be hard to manage
It can be very easy to fall into further difficult times when you have many sources of credit to handle. It can be the case that you tip the balance from affordable to unaffordable very quickly.
Thus, it would be highly irresponsible to apply for lots of loans with the knowledge that it would be very difficult to meet the financial demands of this. If you are already in this situation, you can seek debt consolidation. This is where you compile all of your debts into one, more manageable debt to pay off over a set period of time. It basically cancels out the confusion between the individual loans and consolidates them.
However, if you can avoid this, it is better to stick to one loan at a time and look for alternative options to fill in, like a credit card.
Payday loans are designed to be a short-term fix of cash
By their very design, payday loans are meant to act as a short-term form of finance rather than a large debt which gets paid off over a number of years. So why do you need multiple? It is best to look elsewhere if your payday loan deal does not cover your financial needs.
If your needs are small by fast, then a payday loan is a great option for you as you can surely afford the repayments for this. You must stick to one to ensure that you will be able to pay this off without having the fear of compiling more and more debt on top.
People who typically apply for a payday loan do not require a large amount of credit. If you do, It is highly unlikely you would be able to pay this off by payday. You should always aim to assess your requirements as well as your affordability. If you require an amount of money that you know you will need time to pay off, you should look at alternative sources which will allow you to get what you need at a better rate.
If you have found yourself in need of a loan, but do not have the best credit score in the world, you can still obtain the money you need with payday bad credit. We specialise in loans from £200 to £1,100 and you can repay the amount back over a number of weeks.