Mr Greedy Lender,
I’m going to lay down a few facts about payday loans for you, maybe I’m feeling frivolous or maybe I feel that if you don’t already know then you deserve to know the truth. For a start they are not good value for money, in fact they are terrible, even ridiculous, did you know they are banned in certain US states as the interest rates were so bad, they are in fact illegal in certain parts of America. That’s ILLEGAL, just like drugs and murder, they are considered in the same category as both. Now if you can’t compute what that means, in Lehman terms it’s not very.
The fact that people still persist in getting payday loans escapes me, there are slight benefits to online payday loans and I may touch on those later, however in this article I am more interested in laying it on the line for you about what should be obvious.
A payday loan/cash advance/no fax loan, whatever you wish to call it, a rose by any other name etcetera etcetera, is designed or rather it has been thought up to extort as much money from the borrower as possible. Fact. The loan should be taken out over the space of 1 month; in fact to take it for any time more than this is beyond silly. The reason for this is simple, for every extra month you do not repay the loan then the interest is deducted anyway, for example if you take out a £200 loan with interest of £25 for every £100 borrowed, if you fail to repay it as agreed, i.e. after a month, you are liable for the same charges every month it is not repaid. So if you go over by 1 month you will be charged £100 on a £200 payday loan, doesn’t look to good does it? My math’s isn’t the greatest but that equates to a 50% charge on what you borrowed. You can just hear the lenders rubbing their hands together at the thought of it.
Of course all borrowers would claim they go into it with their eyes wide-open to the risks, really? So why do so many fail to repay it after the first month. Oh yeah FYI I know this as the lenders pay such a high price for every customer a site refers, I couldn’t possibly divulge that, I will however say that it is pretty close to the interest for a payday loan of £100. The lenders know they can pay this amount as more often than not the borrower will go over the 1 month and incur more costs, ummm the infamous payday loan trap, I can’t say that I know this exists although it is talked about often in many forums by people hell bent against the idea of payday loans.
The reason why I think this doesn’t happen (people taking out more payday loans to pay off ones they already have) is that in this country unlike the States there are only about 3 lenders, that means a person cannot spend to much time jumping from one lender to another as they will be refused a loan if they already have one with a lender and will soon run-dry of lenders, that’s not to say they don’t try, the majority of people on this site applying for a online payday loan are refused for this reason.
I might break more ‘truthful’ news on payday loans on another occasion, however for this post I feel I have said enough to put you off from applying for a loan, if though you have no-one else to turn to I feel your pain and wish you the best of luck in your search for an answer. What about selling your TV? All that’s on is celebrity nonsense these days anyway, that’s got to be better then running the gauntlet of greedy lenders and payday loan trap-doors.
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