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Payday Loans
Pay Day loans
| Company | Package Name | % Typical APR | Maximum Loan | Borrow £100, you repay |
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About Payday Loans
Payday loans may seem attractive at first glance - offering instant cash without running credit checks - but the interest rates are sky high which can make them a very dangerous loan indeed! Use of these loans is spreading at an alarming rate in the UK as more and more Brits are falling victim to the promise of “quick fix” cash.
A Payday loan is generally a very short term loan which is designed to help solve temporary cash flow problems before payday. To qualify for a Payday loan you must be over 18, a resident of the UK, employed and have your salary paid directly into your bank account. The maximum amount you can borrow depends on your income but is typically between £80 and £750. The loan will normally be offered for a term of between seven and 30 days, and will usually be repaid in full including interest charges on your next pay day.
Generally, the interest is set at about 25% for a one month loan term. For example, if you borrow £100, you will be required to pay back £125. This is equivalent to an APR of 1355%! When you consider that a typical credit card charges around 16% APR and a personal loan less than 11% APR you can see how crazy Payday loans are.
There are plenty of preferable alternatives to payday loans including overdrafts, credit cards, personal loans, adverse credit cards, loans from family or friends and cash advances from employers - I would strongly recommend you try one of these first.
Unless you have exhausted all other possibilities and there really are no other options left available – avoid Payday loans like you would avoid the plague. They are highly dangerous product and while they are easily-accessible, they are not easily-escapable.
Read the complete guide to Payday Loans>>>
If you have tried all other alternatives and you feel that taking out a Payday loan really is your only option, then do ensure you have read all the terms and conditions before you apply for it.
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