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Loans from £200 to £1000

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Representative 1255% APR

Loans from £1500 to £4000

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Representative 99.9% APR

Payday loans from Dot Dot Loans

What is a payday loan?

Payday loans are considered to be quick forms of finance which are repaid in one payment at the end of an agreed period, alongside added interest. Generally the loan is supposed to be repaid within 30 days and will normally be settled on the next payday – hence the name payday loans.

While the APR (Annual Percentage Rate) of a payday loan is often much higher than other forms of finance, as a short-term, quick means of borrowing, many people have used them to cover their outgoings in a difficult month.

Over the last few years payday loans have often been the first port of call for many in a tough situation.

However, there are alternative forms of borrowing – for example short term loans – which may prove more suitable, depending on your personal circumstances

The difference between a payday and short-term loan

While payday loans are generally repaid in one payment on your next payday – which could leave a borrower in the same position as the previous month – short term loans are generally repaid over a number of months allowing the borrower to make lower payments spread over a longer time period.

It is also worth noting that Dot Dot short term loans don’t have late repayment fees whereas payday loans companies often do.

Take a look at our loan calculator to find out more about our short term loans.

Short-term loans vs payday loans

With payday loans, repayment problems can arise due to extra costs that borrowers didn’t anticipate, such as an unexpected MOT, overspending on a family holiday or household repairs. Due to this people can end up in a position where making the bulk payment at the end of the month is no longer possible

This generally results in late-fees and the fear of a damaged credit rating, which can result in further borrowing. This is what is known as the ‘rollover’ effect and it can cause difficulties for some borrowers.

Short-term loans on the other hand won’t require you to repay in one lump sum and sacrifice a large chunk of your wages at the start of the month. Instead, they allow you to repay your loan in smaller amounts which helps to ensure that if any surprises crop up, you’ll be in a better position to deal with them.

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Short term loan

Representative Example

Borrow £300 over 3 months with monthly repayment of £153.63. Total amount payable £460.89. Interest rate 292% p.a. (fixed). 1255% APR Representative.

Long term loan

Representative Example

Borrow £2500 over 24 months with monthly repayment of £198.68. Total amount payable £4768.25. Interest rate 71.1% p.a. (fixed). 99.9% APR Representative.