The resounding answer to this question would have to be yes and no! Not particularly helpful - you are no doubt saying, but bear with me and allow me to explain more clearly for you.
Under certain, extreme circumstances, small loans can actually prove to be a real godsend. However, it is vitally important that you only borrow what you can afford and you pay the loan back on time. If you can pay the loan off earlier - sometimes this can work in your favour and you may actually manage to save a few pounds.
There are more and more companies springing up nowadays to offer people small loans. Companies such as payday-loans.co.uk are filling a definite niche in the market and can prove to be very useful indeed.
Such small loans should really be used for exactly what the name of the companies suggest: e.g. in the company name above - a payday loan. They are primarily intended to tide you over with a relatively small amount of cash until you next get paid through your employer.
They are definitely not to be used as a means of funding anything else in your life. If you think you can use one of these small loans for a new car, or perhaps a new kitchen - seriously think again!
The small loans are ideal for very short-term borrowing. If you need more money, for a longer period of time, it is imperative that you give this type of lending a very wide birth. The interest rates are usually at completely extortionate APRs and are not intended for this type of borrowing.
