Category: Payday Lenders

The True Cost of Payday Loans

Posted by admin – January 9, 2012


It’s often asked why payday loans are so expensive; with huge annual interest rates sometimes quoted, implying that rich companies are profiting at their customers’ expense.

When investigating why short term loans cost what they do, it’s worth pointing out that it’s very misleading to talk of APR in relation to these kind of loans, as the loans are made over a much shorter period of time.The annualised interest rate is easily in the triple-digit range, but these astronomical figures really bear little relation to the actual cost of the loan products.

Using the same reasoning, you could quote the price of a taxi at £15,000 per 1,000 miles, or £50,000 for a ton of oysters,…

Be careful, it’s the ‘Accident season’!

Posted by admin – November 16, 2011


In preparation for what we have christened ‘the accident season’, we have invested in brand new technology that makes it the only online loan provider to make funds available 365 days a year, 24 hours a day – even on public and Bank Holidays.

 

Motivated by research that shows that the period between early November and Christmas is one of the ‘riskiest’ of the year for both potential accidents and emergencies that often strike causing huge unexpected expense, the new system means that people who fall victim to cash emergencies know that there is instant help at hand.

 

With the change of season, risks range from icy surfaces that can cause road accidents and pavement falls, as well the associated risks of an increased number of people driving to and from work…

Into debt management? Exercise caution with payday loans

Posted by admin – November 4, 2010


Payday loans are popular in western countries especially because of the relief they offer in the last minute. Payday loans are specifically meant for emergency cash and hence come with comparatively high interest rates.While a payday loan is much better than credit cards, in many ways it is still an evil but in popular terms, a necessary evil. If prudently used, payday loans can actually be the ‘good shepherd’ during ill days.

But people often tend to overlook the flip side of payday loans which later turn out to be nightmares. One such overlooked nightmare is the situation where a person is under DMP [Debt Management Plan]. When the money doors crush each other and let you with little or no money to pay back creditors, you can go for…

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Payday Loans or Credit Cards?

Posted by admin – September 3, 2010


What differentiates a credit card from a payday loan? We are certainly not talking about fundamental differences between two unique financial products. In the context of indebtedness, it is the discourse on ‘which option is easier on the budget’ that can go on for eternity. So let’s take a closer look at these  financial solutions for the cash-strapped.

Credit cards had taken the world by storm when they arrived. Soon enough, every second person in the world had a 3×2-inch plastic card in their wallet – a metaphor for financial independence. Or is it addiction that would eventually prove disastrous for those who throw caution to the winds? It is, perhaps! Absorb this, 6% of households in Great Britain use credit cards to pay their rent and mortgage. Considering the “plan B” nature of credit cards, this dependence…

Online Loans Come To Your Aid When Inflation In The EU Hits A 20 Month High

Posted by admin – August 21, 2010


In the 27 EU nations, costs went up 2.1% in July, which is higher than the rise of 1.9% in June, as reported by BBC News (http://www.bbc.co.uk/news/business-10985708). The annual inflation has been the highest since November 2008.  The inflation figures are rising due to the increase in fuel costs, tobacco and alcohol. Although on a month-to-month basis, prices in the wider EU fell 0.2%, the rise in inflation in Eurozone is disturbing.

When it becomes difficult to manage living costs due to such fluctuations of the economy, our monthly budget tends to get out of hand. Costs keep rising, and income does not. These are tough times to get by, and this is when you might get caught up in a cash emergency. If that is the case, then you shouldn’t worry, since you can…

Payday Loans Are The Alternative, When Banks Offer No Alternative

Posted by admin – August 18, 2010


While the demand and need for payday loans in the UK was established some time ago, people still were reluctant to understand and accept the evolution of the payday loan industry, which ensures more protection to the borrowers as well. Research on the payday loan industry in the UK shows that a majority of the people in the UK use payday loans, reveals BBC news.

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Responsible lending in the payday lending industry

Posted by admin – November 6, 2009


The concept of responsible lending or irresponsible lending (as some might say) is elusive to a large extent, since there has been no clear direction from the government or legislative regulatory bodies. Unclear scope of this legislative piece has put consumer action groups and credit lenders face to face in a stiff battle, each interpreting laws in their own way to eke out benefits.

The OFT along with the BERR has launched a consultation to define the scope of the Consumer Credit Act 1974 (as amended by Consumer Credit Act 2006) with regards to responsible lending.

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Who Is More Transparent – The Bank Or The Payday Lender?

Posted by admin – August 11, 2009


Think ‘payday loans’, and as an uninformed consumer, it is natural that you would conjure up images of spiked interest rates, information misuse, and loan fraud. Those who parrot apprehensions 2 & 3 as a reason to stay away from payday loans often fail to realize that it is an issue of subjectivity. It always goes without saying that once you drop your guard or if you run out of luck, there is always a possibility of being conned or victimized. Although there are instances to justify this sense of insecurity, one must understand that isolated cases don’t make for credible yardsticks. As for apprehension 1, which perhaps is the most widely quoted, a closer inspection reveals how unfounded the allegations are.

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