Class Action Lawsuit: Payday Loan Companies

Payday Loan Companies

A payday loan is a one-off, short term loan designed to keep your finances afloat until you receive your monthly wages. You generally have the option borrow between £80 and £1,000 and the idea is that you pay off the loan in full as soon as your monthly wages arrive in your bank. However this instant-access borrowing doesn’t come cheap, and many payday loans UK companies have been known to charge rates of interest as high as 2,000% APR, sometimes even higher. Although payday loan lenders design their packages to be short-term, there is an option to roll your debt on from month to month a very bad idea when considering the amount of interest you will be paying.

The ‘Credit Crunch’ may now be officially over, but it has left many people still desperate for cash. If you have exhausted every other possible avenue of raising finance or have a few too many black marks on your credit history, then and only then – you should you consider the possibility of taking out a payday loan. There are exceptional circumstances that might push you towards taking out a pay day loan, such as an unexpected bill. However always try talking to whoever sent you the bill first. If you explain your situation then it may be possible to come to some arrangement with regards to making staggered payments.