True Blue LoansThe cost of a Payday Loan

Payday Loans

How costs can go mad with a payday loan

Borrowing money is easy. Paying it back it a little more difficult.

Lets look at how the cost of a payday loan can get out of control.

Payday Loans

Lets say you borrow £500 as a payday loan.

You are paying the legal maximum of 0.8% per day interest.

You plan to have the loan for 30 days.

You expect to have to pay back, in a single installment, the loan of £500 and £120 interest.

Payday Loans

But at the end of the month you can’t afford to pay £620.

So you roll the loan over and pay just the interest of £120. You still owe the initial capital of £500. A the end of month 2 you do the same again and pay just the interest of £120.

They are not allowed to roll you over more twice, so they put you on a repayment plan. Even if they freeze interest you still will have paid back £500, plus £120. plus £120 = £740.

Wealth Warning

True Blue Loans

This information is brought to you by True Blue Loans

www.trueblueloans.co.uk

For more detailed information on Payday Loans follow this link.