The old saying is that “timing is everything”. This can mean a number of things, but when it comes to finances, it’s usually more pressing than with anything else. But when it comes to payday loans, timing is the key to getting maximum value for your money.

It sometimes sounds like it should be simple to balance incomings and outgoings. After all, you get paid a certain amount each month, so managing the outgoings should be easy. However, that doesn’t take into account cash flow. What if you’ve got money coming in at the end of the month, but due to emergencies beyond your control, have to make payments before that date?

That can be a painful and difficult time for a lot of people. It’s also one that can lead to more outgoings overall, which makes a complete mess of the whole idea of balancing a budget over a month.

This is where payday loans or one hour loans could be a useful thing to use. The whole idea is to borrow a certain amount of money that you will be able to afford to repay once you’ve been paid. Roughly speaking, the interest works out as around 29% of what you pay on top of the amount.

In order to keep this as an affordable amount, one hour payday loans are usually for smaller amounts. While some people may choose to try to borrow larger amounts, our research has found that £300 is a realistic amount for people to be able to borrow and repay within a short amount of time. We normally recommend, especially the first time you apply, applying for a smaller amount.

Also, because it’s a smaller amount, it’s also an amount that could be more likely to be approved by lenders, which is why we have approval rates that are high. Basically, if someone is earning around £1,500 per month, and they want to borrow £300, that’s not an unrealistic amount. However, if they’re earning £1,500 a month and want to borrow £750, that’s half of their wage in one go – which is likely to be a less responsible way of borrowing. It also means that the loan interest is taking up more of their earnings, meaning that the loan isn't as good value - especially if it rolls over, and the amount that needs to be repaid increases.

The higher Annual Percentage Rate (2670%) can be daunting at first glance, but it’s easily explained. Part of the regulations about providing credit, or credit services, is that a Representative APR has to be shown, in order that loans can be fairly compared. Because it’s an annual rate, it shows the amount if you were to use that rate of interest over a year. One hour loans, however, are usually for around 28 days. They’re designed to be repaid in one go, rather than be repaid over a year. If you were taking out a year-long loan at that rate, it would be very expensive – but that’s why they’re only for a short amount of time.

In a similar way to, say, getting a taxi instead of waiting for a bus, there are times when it’s important to get your money fast, especially if waiting for payday can end up landing you with expensive fees or penalties. One hour loans are all about speed – you apply within minutes, get a decision with minutes, and you could have the cash in one hour. So if you need to pay something before your payday, one hour loans can help you when timing is working against you.

It's important to repay on time, as this means you'll get the best value out of your loan, and you'll repay the minimum interest. If you allow it to roll over, you may need to pay the interest again, which makes it a more expensive way to borrow the cash you need. So always budget and plan before you apply.