The repayment periods and interest rates on loans can vary depending on whether you take out a secured or unsecured loan, and depending on the lender that you go through. For example, the typical repayment period on a secured loan is between five and twenty five years, and with an unsecured loan the typical repayment term is between one and seven years, although some lenders offer up to ten years. However, what about people that want to borrow just a small amount of money for a relatively short period to tide them over until they next get paid?

Consumers take out payday loans for a number of reasons. Nobody knows what lies around the corner and many people find themselves facing emergency situations such as unexpected bills or emergency repairs, often at a time when they have used up their wages yet still have a week or two left before they get paid again. Of course, you can always ask friends or family to help out, but for some people this is not an option or they simply prefer not to go cap in hand to family members or friends. This is where payday loans can prove invaluable and can help you out of a tight financial situation until payday comes around.

Source: thriftyscot.co.uk