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Obtaining Unsecured Loans If You Have Bad Credit

Just because your credit has a few nicks does not mean you cannot get a loan. In our current economy it is not unusual for people who previously had very good credit, to have had it roughed up a good bit.

Companies have gone out of business, been absorbed, merged to the point where employees have lost jobs, been laid off, or had their working hours shortened.

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Is This Still An Option For You?

So for many of these employees and former employees, getting a bank loan is probably out of the question. But there is a type of loan that is available for just about everyone. It is called a payday loan and there are many variations of this form of borrowing.

In its most elemental form, all the borrower needs to have is a steady income and a checking account. Once the borrower completes the application for the loan, the money is usually received in his or her checking account as a direct deposit later that day or in a day or two.

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Smaller Amounts Available

Initially these loans are for smaller amounts, typically in the £300 to £700 range and it must be repaid to the lender by the next payday of borrower with interest. The interest rates on these loans are higher than that which could be had in a regular loan, but getting the bank to actually loan the money is another matter.

Once a loan like this is paid back on a timely basis, the lender may expand the terms on future loans by allowing instalment payments and higher loan amounts.

There are times in anyone's lives that demand immediate financial help. Occurrences such as a family member needing to be admitted to a hospital, a vehicle breaks down that is needed to travel to and from work, or a need to travel out of state due to illness of a close relative are examples of needed cash infusions right away.

Breaking The Cycle

Many people live from pay check to pay check and there is little room for any extra expenses. If an emergency arises where cash is needed right away, in most cases they are simply out of luck.

However with a payday loan system available, people have access to immediate cash in case of such emergencies. This is a very helpful piece of knowledge to have because it allows for peace of mind for people who find themselves in these delicate situations.

If you are struggling with debt, you are not alone. The following video highlights someone who is going through similar issues -