Many Briton’s are resorting to short term ‘pay day’ loans to tide them over until they get paid says a report in the Times today. The short term loans, often taken out for just a few days, can charge as much as 1000 per cent in interest, according to figures from MoneySupermarket.
The boom in ‘pay day’ loans has more than doubled in the last ten months, in fact the short term loans have seen an increase of 130% since August 2007.
Companies such as Payday UK, Express Finance and Pounds Till Payday are offering loans of up to £1000 to cash strapped Britons, the loans are generally paid off within a few days when the borrowers wages are paid into their account.
Payday UK say that their typical annual percentage rate for it’s deals is 1335 per cent, compared to 20% on credit cards and 18% on a high street bank overdraft.
Examples from Payday UK show that a loan of £100 would cost £125 to repay, while a loan of £700 would cost £937.50.
1 comment so far
1 payday loans // Jun 26, 2008 at 8:15 pm
I think the payday loan system is great! Theres not a single person who doesn’t have emergancy’s and payday loans really help out.
There quick and easy and really do help.