The payday loan comes to one's rescue in case of any emergency. This loan is short-lived and so is very famous. There are several features of this scheme that separates it from other loans. The loan offers instant cash to the applicants and so it leaves tremendous scope for people to overcome any financial crisis for which one is not prepared. It brings to the borrower a good amount of cash instantly. read more about same at ask4paydayloan(dot)co(dot)uk

These loan types are fine as long as they are not used for long term financial solutions. Short fix only - pay on time and you won't have any problems.

This type of loan is far from fine, they take advantage of desperate people and they are flourishing in the current volatile economic environment.

If you are looking to promote this kind of loan I can only guess that you have a vested interest in people taking them out. Shame on you!

I think you may be jumping on the "hate payday loans" bandwagon here.

For someone to borrow, lets say £200, they would need to pay back £250 (this is typical of most lenders - it may vary slightly with some).

Now for some people this can be cheaper than what their credit card will charge in late fees. It can be cheaper than daily overdraft fees from some banks. For an emergency... and if there is knowhere else to get the money... then paying £50 interest to help out until the next pay check comes in seems reasonable to me.

No doubt you will mention the APR. Yes - the APR is high. Very high. However, and APR is an ANNUAL interest rate. These loans last anything from 2 or 3 days to a maximum of 30 days. So not really comparative.

Many thanks for your patronising response.

These loans are accessed by people who have no other choice and in my opinion and in the opinion of the banking industry and consumer debt group the OFT should take steps to ban these shady lenders.

Interesting that you mention APR and thanks for the heads up about it being annual. Are you seriously advocating the use of these loans when they have a monthly interest of approximately 25%, which is 14 times that of an average credit card or 30 times that of an unsecured personal loan?

Obviously you are entitled to your opinion but when an opinion flies in the face of commonsense it would be worth considering keeping it to yourself.

I really don't think credit cards and overdrafts charge more interest than the payday loans, mine certainly don't anyway! overdrafts and credit cards are definitely the lesser of two evils in my opinion.

Barry

FactoringInvoices I do hear what you are saying. However, many people who are in the market for Payday Loans if they were to borrow on a credit card are unlikely to pay it all back when the payment is due. Therefore it is a debt that would run and run and run. With a Payday Loan you borrow.. you pay back within a month and it's gone.

Yes - you get penalised if you don't pay it back. But nobody should borrow without the intention of paying back surely?

This is true that it is a rescue loan but it also have its own limitations which must be kept known to the people... prior they get in this process.

Payday loans are really helpful in immediate need of money. I often use them to cover some unforseen expenses or repay some urgent bills. It's very convenient due to the opportunity of solving your financial difficulties fast without even leaving your home.

I don't think they take advantage of people, I think they are taking advantage in a gap in the market where it has become to get similar loans from banks. The APR rate is confusing however, it seems like a huge amount, but considering the payment period it only amounts to £20 or around that. They also spell it all out for you, there is no way you can go wrong. If you can't pay it back, don't get one. There may be some companies out to con people, I have used one in the past though where I didn't have any problems (payday power). Just make sure you need it and can afford the repayments.