Tag: payday advance

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,…

Thrifty is the new Gifty

Posted by admin – January 11, 2011


Bob works in a super market and he has a very funny nick name, “Bob- the blunder.” He is well-known for his spending habit which he later repents for having spent on a Dog’s dinner.

Interestingly, Bob’s sister, Angie is just the opposite of Bob and it is so funny to see them shopping together. Every time Bob picks up something unnecessary, Angie simply restores it in its own place before even reaching the cash counter. No wonder she is called “Angie- the stingy.”

But what makes Angie special, is her ability to control her expense, where as Bob does not. There are many among us like Bob and some like Angie. Bobs are more of spenders, whereas Angies’ are more of savers.

What is right and wrong about this picture?

Well, being a spender is not…

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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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Democratisation of credit

Posted by admin – September 9, 2010


Payday loans have always been in the firing line for their ‘debt-creating’ tendencies. Critics have stopped just short of calling these lending practices ‘criminal’. However, the juggernaut of payday lending has rolled on. For good reason, this! As Dr. Lehman and Marc Kilmer discovered, lenders do not necessarily “trap people in a cycle of debt”. The justification is simple. People, who are already in a financial mess and whom high street ‘lower risk’ lenders reject, are the ones approaching payday lenders to wriggle out of their “pre-existing” money hassles. The question is – will a payday cash advance add up to the debt or offer a solution to the same? The answer evidently lies in how efficiently the borrower manages his/her loan.

High interest rates are not an indicator of the ‘obscene’ amount of profits that lenders potentially…

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…