Monthly Archives: March 2012

Payday Loans – What is APR and why does it seem high?

Variable Interest Rate

Interest rates are everywhere. Just turn on the TV, pick up a newspaper or walk past a High Street bank and you’ll see a huge range of percentages being bandied about, whether it is mortgages at 4 per cent, car loans at 8 per cent or credit cards at 19 per cent.

There’s much made of the fact that interest rates are at an all-time low and have been at very low levels for some time now. So when something rather higher appears, it catches people’s eye. Like the APR (annual percentage rate) for a payday loan.

If you’re used to thinking in terms of 4-19 per cent, seeing 1,700 per cent, 2,500 per cent or even 4,000 per cent can come as a bit of a shock. But it’s a misleading figure and not a realistic way of comparing the cost of different types of loans.

APR stands for Annual Percentage Rate and it is the interest payable on the amount borrowed and other charges expressed as an annual rate charge.

Budget 2012: How does it affect you?

businessman with scissors cutting label Budget

The Budget impacts on all of us in one way or another and despite it being neither the most interesting subject nor the easiest to understand it is important that we know how it could affect us.

In summary the Budget is a statement made every year by the Government explaining how it is going to raise the money it needs to run the country.

Worked out by the Chancellor of the Exchequer it includes the decision on whether taxes are going to be raised or reduced.

The Budget for 2012 was announced on March 21 by the current Chancellor, George Osborne.

Among other things it included an increase in tax on cigarettes, alcohol and petrol.

You can find an estimated Budget calculator here courtesy of the BBC.

PaydayUK announced as finalist in Credit Today Awards

iStock_000014177991Small

PaydayUK has been selected as a finalist for the Alternative Lender of the Year category at the Credit Today Awards 2012.

The Credit Today Awards are one of the most coveted awards in the industry, giving young companies like PaydayUK a chance to go up against the large banks and traditional lenders.

The finance firm, which offers simple and straightforward payday loans online, will find out its fate on May 10 during an awards ceremony in London.

Emma Steeley, Managing Director for Sales and Marketing, said: “We are delighted to be one of the finalists for Alternative Lender of the Year at this year’s Credit Today awards.

Your questions answered: Payday loans Q&A

iStock_000014173651small

Payday Loans Q&A

Payday loans are in the press a lot at present, but what are they, and how do they work?

A payday loan is an unsecured, very short-term loan.

How does it work?

The borrower makes an application (usually online or over the phone) and receives an answer within minutes. Payday loans are quick cash advances, and with today’s banking technology the money could be in the borrower’s account the same day. The loan period is for a few weeks; the loan is repaid in full, together with interest, usually on the borrower’s next payday.

How much do people borrow?

Usually from about £100 up to £1,000, depending on their circumstances. According to the Consumer Finance Association, the industry body for payday loan providers, the average loan amount is £273 for new customers.

PaydayUK sponsor Thame Hockey Club

PayDayUK has sponsored Thame Hockey Club

PaydayUK is proud to announce its sponsorship of Oxfordshire-based Thame Hockey Club.

As reported in The Thame Gazette PaydayUK has donated £2,000 to the club, which has four adult teams and a thriving junior section, to pay for new kit and supplies.

Tim Trailor, Managing Director of Global Risk and Analytics at PaydayUK said: “Here at PaydayUK we’ve been aware that we’ve been a growing presence in the community for more than seven years, so we really wanted to give something back and to engage with the community we all live and work in.

The Consumer Finance Association – why does it matter?

Saving for a rainy day

Responsible Lending at PaydayUK.

When you apply for a payday loan through a reputable provider, you’ll probably see that your lender is a member of the Consumer Finance Association. But what does that actually mean?

The Consumer Finance Association (CFA) is the trade association representing organisations that offer short-term, unsecured personal loans. Its members are licensed and regulated by the Office of Fair Trading.

The CFA encourages its members to work to the highest standards, as responsible, transparent lenders that provide the very best customer service. Promoting responsible lending (and borrowing) and keeping its members up to date with changing legislation are key roles.

Powered by WordPress