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,…
Dear customers,
Take 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.