Tag: Credit

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,…

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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Savings and Debt Repayments Increase: Consumers Building A Secure Future

Posted by admin – September 30, 2009


Every dark cloud, they say, has a silver lining. Not many of us would have expected the economic slump to beget positives. So, the recent news item from the CBI did come as a surprise; a pleasant one at that! Statistics from the Bank of England suggest that consumers are working diligently towards paying off their debts, while increasing their savings simultaneously. The fluctuating economy and the ensuing uncertainty clearly has driven the record 309 million pounds unsecured debt repayment, a significant chunk of which is credit card payments. The ‘belt-tightening’ measure adopted by consumers is a heartening step taken towards a better, more stable future.

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Know The Person In The Mirror: Borrow And Spend Wisely!

Posted by admin – April 20, 2009


Budget PlanningTake a closer look at your credit commitments and your monthly budget. Does the former outbalance the latter? If yes, you need to act fast. It is a situation most of us can relate to. When we run out of funds, our natural thought process directs us to a lender. We tend to forget how much our budget can really afford. Mortgage loans, personal loans, payday loans, and a list of monthly bills…and you’re left wondering if you are prepared for the worst nightmare – losing your job.

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