When customers take out payday loans, one of the first questions they ask is ‘how much will I have to repay?’ well the answer to that is that it depends on the lender that you apply with. Many people see the interest rates of payday loans and are put off by how high they are, but this is not the best way to look at how much you will pay.
Even though our APR is at 1737.2%, our repayments work out at only £25 on every £100 that is borrowed. APR is a tricky way to assess loan payments, as it is usually applied to annual lending products like a mortgage, so when put next to a short term lending product, the rates can seem higher.
Although many lenders will charge similar fees, it’s always a good idea to ensure that you check how your particular lender charges. So, to find out how much you will have to repay on your loan, check out our repayments chart. We also have no hidden or extra fees added to our loan costs.
As with any form of credit, it’s always a good idea to ensure that you will be able to afford to pay back the loan (plus the interest) when your repayment date comes along. So, by checking out the repayments charts of your loan provider before signing up for a loan, you will ensure that there are no scary surprises. If you look at the amount that you will have to repay and think that you wouldn’t be able to afford it, we would recommend not taking out a payday loan.
If you have already taken out a loan and are struggling to meet the repayments, then instead of taking out another loan, you should first contact your lender. They should be able to help you with any questions that you may have. You should also seek financial advice from a debt management professional like the Citizens Advice Bureau (CAB)
How Much Will A Payday Loan Cost Me?
Using Payday Loans To Help With Costly Bills
There’s nothing worse than getting a utilities bill, like electricity or gas through, and realizing with a heavy heart that it’s a lot more than you were expecting. It’s not surprising that with energy companies raising their costs combined with other prices steadily increasing, it means it’s now even harder to be able to get by.
If you are struggling to keep on top of bills, there could be a temporary answer – a payday loan. Payday loans are a small short-term loan, designed to help customers with situations exactly like these. If you’re having difficulties getting the cash together to cover costs, you could find that this type of credit is ideal for you. They are usually anything from £50 up to over £1000, with most lenders charging around £25 on every £100 that is borrowed.
How Can I Use A Payday Loan To Cover My Bills?
It’s all very easy. All you have to do is fill out our quick and easy online application form and wait for your instant lending decision. Once approved, and you have agreed to the terms and conditions of your loan, you then have to sign online. Once this has all gone through, most customers will receive their cash on the same day, most within an hour. Ideal if you need fast assistance with costly bills.
This is one of the best things about payday loans is they are quick and easy to obtain. If you need help quickly with your expenses, then you could find that a payday loan is your best option. It’s all completely online, meaning no hassle with heaps of paperwork, so you can pay for your bills as quickly as possible.
Millions of people all over Britain make use of the short-term loans industry to help them cover unexpected emergency costs. Although this is true, it doesn’t mean that this is always the best option.
Before taking out a short-term loan, you should always ensure that not only is it right for your circumstances, but that you will be able to afford the repayments.
Payday Loan Borrowing Reaches New Heights
New figures from Consumer Focus, have said that Britons have borrowed over £1.2 billion from the payday loans industry in the last couple of years.
The popularity of the short term loans market is continuously increasing, as it was estimated that over 1.2 million adults in the UK took out payday loans in 2010. The providers of payday loans amounted to around 20% of the total amount lent to people all over the UK.
Also the OFT (Office of Fair Trading) has implied that they predict that demand for the short term loans industry could greatly increase in the future. It has also been forecasted that the number of people taking out payday loans, could rise by 40 to 45 % in the years to come.
The research has found that the typical borrower of these types of loans, will likely be a young adult with an income of under £25,000, with the majority not having a bad credit history. Just over half of the UK borrowers are under 35, with 60% not married or living with someone. The average loan taken out was around the £300 mark.
The main criticism that people have about these types of loans is their APR. Although many will carry APR’s over 1000%, it is difficult to gauge how much you will repay, as APR is quite an unreliable way to calculate loan costs. Most customers would benefit more from looking at the repayments charts of the loan provider instead to get a realistic idea of how much they will have to repay.
Consumer Focus made a few recommendations on how they thought that the payday loans industry could be improved and there were limiting the number of loans or rollovers per household. This type of thing is already in place, as all lenders have to abide by the ‘responsible lending’ rules. These rules mean that lenders won’t provide loans to people who would not be able to afford them or charge them any hidden fees.
Resources
https://www.simplepayday.co.uk
How Much Will A Payday Loan Cost Me?
By Jonathan Nolan
