Why Payday Loans Are a Perfect Way to Borrow Money on a Bank Holiday

Payday loans - even if you don't know what they are, it's likely that you've heard these two words more and more in recent months. There are many reasons for this, one being that they are a perfect way to borrow money on a bank holiday.

This type of short-term loan has become increasingly popular among people who, even when they're good with their money, struggle to make it from one month to the next on their wages alone.

Maybe they've had an unexpected bill that month or they had to take unpaid leave and it has dipped into their pay packet. Or, maybe they've had big events to fund - say, a couple of bank holidays in a month and all of the festivities that go with them.

Payday loans can be an effective way for some people to access cash quick and on a strictly short-term basis. While the loans are sometimes criticized for being expensive, they are actually often cheaper than other types of borrowing.

Traditionally, payday loans were available from high street lenders to those with a cheque guarantee card. However, the facility has grown in popularity and is even more accessible. There are a whole host of companies who offer quick-access cash, with many operating online and promising to transfer cash within an hour of your application.

So how does it work? Well, it does exactly what the name says - it is a loan that is used to tide you over until your next payday.

Lenders give you access to a small amount of cash, usually based on your income and whether you have had previous loans with them before. You provide the date of your next payday, along with your bank and debit card details and the lender transfers the cash into your account.

Then, when it reaches your specified pay date, the lender debits the amount of cash you borrowed, plus interest and fees, directly from your account. The whole process is straightforward and simple. All you need is a UK bank account, a valid debit card and regular employment.

One of the most attractive aspects of payday loans is that they are available to people with less-than-perfect credit. Firms perform identity checks based on the information you provide them, but there are no extensive application forms to fill in - and it can all be done online, usually 24 hours a day, seven days a week.
This is why payday loans are a perfect way to borrow money on a bank holiday. While regular high street banks will be closed, with many not even offering a full telephone service on a bank holiday, pay day loan companies still operate. They are there to accept applications, process them and transfer cash into your bank account (in line with your account's clearance policies).

Almost every bank is now a member of the Fast Payment Service, which means money transferred between accounts generally clears within two hours of being sent - regardless of what day it is or if the bank is open. So when a payday lender sends money on a bank holiday, it should still be available for you to access in a matter of minutes.

We all know how expensive bank holidays can be, and how unexpected outlays can creep up on us. Whether you are using it to cover an urgent car repair, an unexpected night out or just to tide you over for day-to-day costs until you can get to the bank and extend your overdraft, payday loans are a great service that is perfect for bank holiday borrowing.