Category: Payday Loans

Creditors chasing you? Take control

Posted by admin – November 22, 2010


Most debtors have the habit of ‘pushing the situation’ when they are in huge debt. They shy away from asking for guidance and try to solve the issue on their own, which pretty much squeezes the sandwiched situation more badly. In some cases, people are unaware of the different options available through charity organizations or the government to get out of the debt trap.

The story of debt could have begun with different openings, it could have been a genuine situation where the debtor had insufficient funds to pay the loan back or it could have been due to a casual need like a house party. Whatever the reason be, it is important to find a quick solution to the accumulating debt than wait for the “debt sentence.”
There are two ways to address a debt situation:

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In huge debt? Read on

Posted by admin – November 12, 2010


“Volunteer money trap” has become a favorite game for many in UK these days. A recent survey done on a sample of 1000 working professionals has revealed alarming facts about the increasing number of debtors in UK. “Behind the scene” story for this is the alarming misuse of “short term loans” which are meant to be used only during emergencies.

Many tend to forget that short term loans are specifically meant to be taken only during times of extreme financial crisis, especially considering the fact that short term loans carry high interest rate compared to other general loans. This could possibly be the reason for the striking 88% of UK people in financial crisis today. Interestingly 68% of the population in the debt category earn less than £250 per month and 15% of them earn less than…

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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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Credit cards or Payday loans?

Posted by admin – October 20, 2010


Too fast, too furious. That’s the lifestyle of today. Everything has to be fast or it is not liked. Instant food, instant message, instant love, instant everything. Incidentally, money tops the ‘instant chart’. Getting things done on time is not just a requirement but a demand. And nothing gets done without money which makes instant cash, a heavy demand.

Credit cards are the default ‘celebrities of instant cash’ and using credit cards have become so common these days and so is getting into debt. It is hard to resist credit cards especially because of the ‘not from my pocket’ feeling that you associate with them . But the fact is, every time we use credit cards, we are actually adding interest to the money we spend using the card and in turn making our creditors happy. Everyone…

Payday loan? Is it worth the pain?

Posted by admin – October 11, 2010


What do credit cards and payday loans have in common? High interest rates!? Yes, for one thing, sure. But why would more than three fourth of the population in almost all developed countries have credit card crunch as part of their life’s misery? Don’t they know the interest rates are high and they might end up paying more than they imagined paying? But the situation always turns out mumbo jumbo where the bills play different tunes in the end of the month. Often melancholy.

True to every word above, credit cards turn out monstrous than payday loans, as they tend to flex their muscles horizontally and vertically almost every month while polishing their ribbon wrapped hidden charges. Payday loans turn out to be saviors in this case, as they only charge the initial APR which is…

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…

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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Payday Loan Market Is Growing in the UK

Posted by admin – August 17, 2010


Payday Lenders in the UK are celebrating to say the least! Debtmanagementtoday.co.uk reports the results of research carried out by Consumer Focus, which confirms that the payday loan market in the UK is growing right now, and is expected to grow by 40-45% in the future.

The research that threw more light on payday lending in the UK, reported that in 2009 people in the UK borrowed £1.2 billion from payday lenders, and that there were 1.2 million active payday loan customers last year.  Around 60% of the borrowers are unmarried or cohabiting, and around 55% or the borrowers are under the age of 35. The average loan amount borrowed is £294, and each borrower had three outstanding loans last year. There were a total of 4.1 million outstanding loans in 2009.

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