Monthly Archives: January 2013

Why is your interest so high? PaydayUK addresses the misconception


The simple answer is that the level of interest isn’t as high as the Annual Percentage Rate (APR) makes it look.

Payday loans and other short term loans have become a major talking point in recent years. One of the main reasons for this is the high APRs displayed on their adverts. Unfortunately a large proportion of this furore is based on misunderstanding the nature of APRs and the differences between them and regular interest rates.

Short term lenders, like most financial lenders, are required by law to display their product’s Representative APR when advertising that product.* APR is the interest payable on the amount borrowed as an annual rate charge, i.e. the total interest rate you would pay if you borrowed that money for a whole year.**

When used for loans that last a short period of time the picture becomes, to a certain extent, distorted. PaydayUK has a representative APR of 2,090 per cent but not one of its customers will ever have to pay an interest of anywhere near that.

PaydayUK sponsors Brackley Football Club


Short-term loans company PaydayUK is proud to announce a long-term partnership with local football club Brackley FC.

The club is enjoying the most successful period of its history after being promoted to the Conference North last season; their highest ever position in the national league system. In the 2008–09 season they reached the FA Cup First Round proper for the first time in their history.

Local company PaydayUK has become the club’s executive partner for the remainder of 2012/2013 and 2013/2014 and is looking forward to helping the club continue to progress.

What our customers say: Gareth

Gareth: PaydayUK customer

Gareth is from the Isle of Wight.

When Gareth found out that his uncle, who lived in Milton Keynes, had stomach cancer, he needed to go to see him as soon as possible. Unfortunately it was still two weeks until payday and Gareth had no cash to spare. It was also January so his friends and family could not lend him money to travel.

When Gareth found PaydayUK online he found the website very self-explanatory, clear and transparent, allowing him to know exactly how much he would need to repay on the amount he wanted to borrow. The process was easy with no strings attached and within a few hours of applying the money was in his account.

How do short-term payday loans work?

accelerate your savings

When you’re short of cash a short-term payday loan may seem a good idea. But how do they work and what’s the best way to use them? Hopefully this article will help answer some of your questions.

A short-term loan is fairly self-explanatory in so far as it is a loan taken over a short period of time. The interest rate and APR are generally quite high but the customer is paying for speed, ease and discretion.

The concept is that you borrow the money and pay it back on your next payday. This is why they are also known as payday loans. The quicker the payday loan is paid off the better. If you let the debt extend over a longer period it will end up costing you more.

Short-term loans and responsible borrowing: what should they be used for?


Short-term loans, also known as payday loans, are a great way of getting hold of emergency money in a hurry. Whether you’re fixing your car so you can get to work or fixing your boiler, short-term loans are designed for you to get the money ASAP. The money is borrowed when you need it and paid back, with the agreed interest, on your next payday.

Despite the useful elements of payday loans they should only be used if they are suitable to the situation.

As with most financial products payday loans should be used in moderation and only after careful planning and evaluation of your financial situation.

Payday loans are meant as a short term solution; here are some examples of what payday loans should and shouldn’t be used for.

Appropriate uses

  • Relieving a temporary cash shortage

The emphasis here is on temporary. If it’s a cash shortage that is anything but temporary (i.e. until your next payday) then a payday loan is not the correct choice and will only make the situation worse.

Hear from our customers: Katerina


Katerina lives and works in London, but is originally from Greece. When she found out her mother had suffered a stroke she needed to get back to Crete but had no money available.

When searching for a short-term loan online she found out about payday loans and was immediately drawn to PaydayUK. She found the website and process extremely simple, straightforward and clear, allowing her to secure the funds she needed to book the flights which enabled her to arrive at her mother’s bedside the next morning.

Using PaydayUK enabled Katerina to manage her money the way she wanted. Her experience, which was quick and effective, was so good she says she would definitely use PaydayUK again.

What our customers say: Andrea


Andrea’s son has autism and due to his condition lacks confidence. One of the main ways he gets relief is through dance. The dance school he attends decided to put on a show, its first in 17 years. Understandably Andrea’s son was very excited and looked forward to taking part.

However, Andrea’s financial situation meant they could not afford all the costumes and expenses needed for the show. Then a friend recommended PaydayUK.

PaydayUK fitted perfectly with Andrea’s finances. She expected it to take a couple of weeks but the money was in her account in just two hours. As a result her son’s confidence has grown and he has taken part in a string of competitions and shows since.

Payday loans from PaydayUK are fast and the application process is straightforward


Here at PaydayUK we appreciate that for many people short-term loans are a solution to a financial emergency. Perhaps someone’s car breaks down but they don’t have the cash to pay for it straightaway. Unfortunately payday’s a couple of weeks away but they need the car to get to work, so they apply for a payday loan to cover the bill.

In situations like these the efficiency with which customers can apply for a loan and how quickly it is processed become incredibly important.

In many cases the applicant needs the money in their hand as soon as possible. Because of this PaydayUK has designed its application process to be as quick, painless and straightforward as possible; while remaining safe and secure.

PaydayUK gives quick online decisions, normally without the need for further documentation, within minutes.*

Top 4 payday loan misconceptions – Refuting some of the misunderstandings


Payday loans are one of the most discussed issues in the financial industry at the moment.

As a responsible lender PaydayUK would like to attempt to address four of the common misconceptions that continue to be major talking points.


  1. Payday lenders offer loans to the unemployed

This is a common misconception when in fact the majority of payday lenders, including PaydayUK, only lend money to applicants in full-time employment. If you don’t have a full-time job and earn at least £500 a month you will not be offered a loan; it’s that simple.

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