There are both advantages and disadvantages to short term or payday loans. We’ve highlighted a few below:

Advantages

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You don’t need to have a perfect credit history to be eligible

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Paying early or on time can help build your credit footprint

As the loan is short term, you will not be making long term repayments

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If used for long term borrowing, payday loans can cause a debt spiral

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Quick access to funds in an emergency Simple, short application form

Disadvantages

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Interest rates are higher than more conventional lenders

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For those with a good credit history high interest loans shouldn’t be the first option

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Late repayments can damage your credit rating

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Repayments will increase your monthly outgoings, which can worsen debt

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If used for long term borrowing, payday loans can cause a debt spiral

The total amount repayable can be calculated at 0.8%.
If you borrow £100 over 30 days,  the interest would be £24, thus the total repayable would be £124.