Pay Day Loans: Points to Ponder

PAYDAY LOANS Points to Ponder Typical payday loan fees can range from £13-18 for every £2000 &100 borrowed. Some online providers charge as much as &30 per &100, with APRS up to 2000%. fa one month loan I Original Loan Repayment Amount at 20% interest is deferred/rolled over for 6 months, the final &660 payment could end up MORE THAN DOUBLE the original amount. &300 The number of payday Payday Borrowers borrowers has increased FOURFOLD since 2006, 1.2 million with a total of 300k &1.2 BILLION 2006 2010 borrowed. The number of borrowers could rise by a further 45% Typical Payday Loan Customer Payday loan users tend to have lower incomes ... 1 Under £25,000 In 2009, the average payday loan user borrowed &294. Payday loan borrowers are taking out an average of 3.5 loans per year. 1 £ 100 loan I Fee £30 3 months 1 year 1 Under Age 35 Single 30% LOAN COMPOUNDED ... and be young & single. MONTHLY BEFORE YOU BORROW: VConsider Cheaper Options Try getting or extending an authorised overdraft or personal loan from your bank or building society. Your local credit union may also be able to help you, even if you have bad credit. Confirm Lender is Regulated Check that your lender is approved by an industry body, such as the Finance and Leasing Association or Consumer Finance Association. Also make sure that it conforms to the Office of Fair Trading's Responsible Lending Guidelines. VCheck for Hidden Fees Many payday lenders will not give you a full rundown of all the processes and charges involved. For example, if you roll payments over are extra charges involved? Don't get caught out. W Design/lustration by waltonportfolio.com All above figures drawn from Consumer Focus, published 14 August 2010 Confused.com