Category: Payday News

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,…

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 – Bait or Manna?

Posted by admin – August 27, 2009


Dangle a juicy carrot in front of a hungry rabbit and rest assured that the animal will nibble on it. The situation is similar in the current economic clime where payday lenders are cashing in on the desperation of credit hungry consumers. The industry per se has drawn a lot of flak in recent times for a variety of reasons. Some believe that lenders are using “aggressive marketing techniques”, while others feel the APRs are ridiculous. Since lenders conveniently ignore the fact that their customers are people who are already struggling to keep insolvency at bay, the efforts to woo them are usually centered on “your need – our solution” campaigns. So, the target audience is essentially the credit hit section of UK that is lured into a baited cage with the promise of…

Payday Loans Can Help You Save On Your Car Insurance!

Posted by admin – July 17, 2009


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A car is an indispensable part of our daily lives that we rely on for transport. While owning a car makes our lives much easier, vehicles come with a heavy price factor in terms of repairs and maintenance costs. Sometimes, a minor fender-bender is all it takes to throw your finances into utter chaos. As you may have noticed, a car accident usually occurs at a time when you just don’t have the funds to deal with it. Not only do these minor mishaps cause a great deal of emotional distress, they also make you worry about finding the money to get your car repaired immediately because you just can’t do without it. For a vast majority of working people, a car isn’t a luxury, but a necessity, since it gets them to…

Bank Overdraft Fees And Credit Card Charges

Posted by admin – July 15, 2009


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Much has been said about the interest rates associated with payday loans, with some critics of the payday loan industry going to the extent of accusing payday lenders of usury. While it is true that payday lenders do charge a high rate of interest, they are vastly preferable to other sources of credit which can leave your finances in utter disarray.

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The Lending Stream Nintendo Wii Prize Draw Is A Hit!

Posted by admin – June 20, 2009


We thank our customers for their participation in our Nintendo Wii Prize Draw. We would also like to inform you that the draw is officially closed and the results will be formally announced on June 30. For all those of you who have participated…keep your fingers crossed as you could be one of the lucky winners. The rest of you…watch this space as we intend to run more interesting promotions in the near future.

Happy Weekend!

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