The Truth about Payday Loans By Pacific-Odyssey.co.uk
Payday Loans • A payday loan is a loan that is designed to be paid back on your next payday. • Typically it is a small loan of up to £500, although some lenders will let you borrow up to £1,000
Payday Loans • Most Payday Lenders are charging the maximum they are allowed being 0.8% per month. • If you borrowed £1,000 for 30 days at 0.8% interest per day you would pay £240 interest in 1 month! • In addition, you may have to pay other fees, although the total cost of the loan cannot be than the same as the amount borrowed.
Payday Loans • The danger of a Payday Loan is that the loan agreement will expect you to repay the entire loan in a single payment on your next payday. • So that £1,000 loan is going to repaid in a single payment of £1,240!
Payday Loans • So you can’t afford to repay £1,240? • You may be able to roll the loan over and only pay the interest due of £240. But you will be expected to pay £1,240 on your next pay date. • Even if you can afford it, you will have paid back £1,480 in just two months!
Payday Loans • My Advice? • Take out a short term loan from a company such as Pacific Odyssey (www.pacific-odyssey.co.uk)