Tag: payday loan

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,…

Ways to build up a good credit rating

Posted by admin – September 15, 2011


Your credit rating determines your ability to secure a mortgage, credit cards and many loans. Your credit worthiness with a particular company is formulated using many factors, which include any past dealings you may have had with the company in question, information you have supplied on the application form, and official credit files from the three major credit agencies.

It’s important to do all in your power to improve your personal credit rating. A little while ago we looked at five ideas to improve a bad credit history. In this post we’ll look at other steps you can take to build a good credit rating, whether you have a bad credit history, or you’re attempting to build…

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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UK Debts Reach Alarming Heights

Posted by admin – August 25, 2010


The UK public sector has taken a big hit in the past two years resulting in a debt twice as bigger than expected. The current UK debt running to a whooping Trillion has been quite a surprise to everybody and this means that the debt in percentage would jump from 62% to 138% in a very short period of time. This makes it almost impossible to further depend on overdrafts and other means of immediate credit during personal emergencies.

People believe now that when there is a financial hiccup, the easy way out is to turn to a loan. It might not be the most convenient way to tackle a crisis situation because of the time consumed by procedures and formalities. The newest development in the debt and finance situation is the sudden gain in popularity of  short…

Lending Money Can Be Tricky

Posted by admin – August 19, 2010


Lending money to family or friends can be a tricky deal. When people need some cash suddenly the first thing they think of is borrowing from family or friends, first because it seems like an easy deal, and second because any loan that they get in such a way is interest free. When we cannot borrow from anyone close to us is when we look for other sources of credit. Most often these credit sources are banks, or money lenders, and pawn-brokers, depending on the amount we want to borrow.

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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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