How much payday loans cost
Payday loans are typically issued within up to a couple of business days, while the process itself is extremely quick and easy. Nevertheless, you shall take into account that payday loans are not cheap. The interest rate you are expected to cover varies in the 24 – 26%, or £24 – £26 pounds per each 100 pounds you borrow. In general, APR is the main factor that defines the payday loan cost. Importantly, an average contract implies a repayment within up to 30 days maximum, which means the annual percentage rate is excessively high in comparison with a majority of loan options. This is the price you pay for the fruits of the service.
Apart from the interest rate your loan can be subjected to extra charges – a processing fee, service fee and so on. Whether you are going to be charged additionally or not depends exclusively on the provider. From our side, we do our best to cooperate with the ambitious lenders aiming at cutting down the unnecessary operational expenses to zero. Thus, as a rule our customers are not charged any extras, though you should still keep the potential expense in mind.
An average payday loan costs higher than a long-term loan solution, so if you don’t manage to repay it on time an already high repayment can turn into a hardly manageable debt. The extra charges and penalty fees may grow like a snowfall, in this case the risk of serious consequences is pretty high. To avoid legal action and non-desired issues with collectors, you should always consider a payday loan as a temporary solution.