Payday Loans - How Much Do They Cost
That this subject which we will talk about a very important topic because it will promote your Read this issue
When taking out a payday loan the amount you will be charged depends on the company that lends you the money. Most payday lenders in the UK tend to operate a fairly similar fee structure with one or two exceptions.
This tends to be a charge of between £20 and £30 interest per £100 borrowed per month. So for example if you were being charged £20 per £100 and borrowed £300 then the total amount you would pay back on your next payday would be £360. However some providers will also charge a one off 'setup' fee per loan which remains the same regardless of the loan size.
Often the companies which charge the setup fee will charge a lower interest rate than one who does not, so the size of the loan you take can influence which company will work out cheaper.
Below are a couple of basic examples using the two fee structures mentioned above:
Loan Amount - £300
Interest per £100 - £25
Admin Fee - N/A
Total Amount Repayable - £375
Loan Amount - £100
Interest per £100 - £20
Admin Fee - £10
Total Amount Repayable - £130
As the examples above highlight the main thing when applying for a payday loan is to check the total amount repayable as this is best indicator of the real loan cost.
It is important to calculate that you have enough to repay the loan on your next payday including the interest and still having enough left over to cover all of your normal monthly expenses. Failure to do thing can mean having to borrow again which is where payday loans can get expensive as they are only intended as a 'one off' rather than to be used over multiple months.
Many people get in to difficulty when the start 'rolling over' the loans as interest charges can quickly mount up and if you end up in a situation where you default on the loan then some lenders will apply further charges which can escalate problems can further.
To minimize the chances of getting in to difficulty it is best to only borrow the bare minimum amount that you need and as mentioned above calculate your expenses for the upcoming month to ensure that you can comfortably repay the loan.
In summary although payday loans can be relatively expensive in comparison to other financial products as a small 'one off' bridging loan and considering the speed and convenience they offer they can be a good alternative for a great number of people.
Your Money Loans search many of the UK's top payday lenders with one quick application form and a decision in 60 seconds. Apply online and receive up to £750 with a same day payout and no paperwork to be signed.
Article Source: http://EzineArticles.com/?expert=John_Fleet
Article Source: http://EzineArticles.com/6480231
That this subject which we will talk about a very important topic because it will promote your Read this issue
When taking out a payday loan the amount you will be charged depends on the company that lends you the money. Most payday lenders in the UK tend to operate a fairly similar fee structure with one or two exceptions.
This tends to be a charge of between £20 and £30 interest per £100 borrowed per month. So for example if you were being charged £20 per £100 and borrowed £300 then the total amount you would pay back on your next payday would be £360. However some providers will also charge a one off 'setup' fee per loan which remains the same regardless of the loan size.
Often the companies which charge the setup fee will charge a lower interest rate than one who does not, so the size of the loan you take can influence which company will work out cheaper.
Below are a couple of basic examples using the two fee structures mentioned above:
Loan Amount - £300
Interest per £100 - £25
Admin Fee - N/A
Total Amount Repayable - £375
Loan Amount - £100
Interest per £100 - £20
Admin Fee - £10
Total Amount Repayable - £130
As the examples above highlight the main thing when applying for a payday loan is to check the total amount repayable as this is best indicator of the real loan cost.
It is important to calculate that you have enough to repay the loan on your next payday including the interest and still having enough left over to cover all of your normal monthly expenses. Failure to do thing can mean having to borrow again which is where payday loans can get expensive as they are only intended as a 'one off' rather than to be used over multiple months.
Many people get in to difficulty when the start 'rolling over' the loans as interest charges can quickly mount up and if you end up in a situation where you default on the loan then some lenders will apply further charges which can escalate problems can further.
To minimize the chances of getting in to difficulty it is best to only borrow the bare minimum amount that you need and as mentioned above calculate your expenses for the upcoming month to ensure that you can comfortably repay the loan.
In summary although payday loans can be relatively expensive in comparison to other financial products as a small 'one off' bridging loan and considering the speed and convenience they offer they can be a good alternative for a great number of people.
Your Money Loans search many of the UK's top payday lenders with one quick application form and a decision in 60 seconds. Apply online and receive up to £750 with a same day payout and no paperwork to be signed.
Article Source: http://EzineArticles.com/?expert=John_Fleet
Article Source: http://EzineArticles.com/6480231
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