Payday Loans, Pay Day Loans, Cash Advances and Short Term Loans - The Misconceptions.
Misconception: The APR is very high
- APR's are calculated based on you paying a fixed amount of interest on an ANNUAL basis. If you borrowed £100 and paid £25 every month for a year, these charges WOULD be very high
- In reality, payday loans are only for a maximum of a month and so the APR is not the most appropriate measure in this case
- However, by law, we have to disclose APR on payday loans and that is why you find this on our Payday Loan Agreement and Charges page
Misconception: Payday Loans must be a last resort
- It is true that many people take out a payday loan because they need a cash advance to cover an emergency need
- However, a significant proportion of easyPaydayLoansUK.com customers borrow because they would like a little extra cash for those special occasions like a holiday or a wedding
- easyPaydayLoansUK.com customers have often looked at a variety of alternatives before making an informed borrowing decision in taking a payday loan
- Payday loans are usually cheaper than bank charges for unauthorised usage - which would be your last resort?
Misconception: Payday Loans must be for people refused credit elsewhere
- Not so. Customers who take out payday loans are generally credit worthy and must have the ability to repay a loan as they can afford their payday loan!
- A payday loan simply fulfils a different credit need to other more established forms of borrowing
- Nor are payday loans for the "unbanked" as funds are paid directly into a customer's account and repaid via their debit card
- If the underwriters at easyPaydayLoansUK.com feel a customer is undergoing serious financial difficulties and a payday loan is not appropriate, they will recommend other forms of debt management
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