APR Rates

Research and analysis can be obtained from national surveys on the typical person borrowing from payday lenders, for what purpose they are boring the cash and the true benfits and costs are once a payday loan has been approved and paid.

The results from the research confirm there is a strong demand for payday loans.  The majority of those who take them out are in real financial need and are also generally within a certain segment of the population. (Those whose annual salary is within the lowest wage bracket).

Traditionally those in need of a short term financial advancement have turned to their bank or building society for an overdraft. Yet now more people are taking out payday loans and as a result are charged interest rates of up to 2,000%. The number of loans taken out in the UK has more than doubled in the last year, rising by more than 130% since last August, according to figures from Moneysupermarket.com, the price comparison website. The trend looks likely to continue as the banks are still coming to terms with the economic down turn and are unwilling to approve short terms loans to the wider public.  

Due to the large APR rates that payday loan companies tend to charge some feel they are preying on the weak. 

To ensure a good service is received it is essential for anybody who is seeking to obtain a payday loan to do their homework before taking out a loan and to find a company which will best work for them and provide them with a service they can trust.