Payday loans in the UK – a brief introduction

As you would expect from a blogsite called 365 UK Payday Loans, the main star of the blogsite are payday loans, those very particular loans that are something of a novelty in the UK still, but that with each year that passes, become more popular as more people discover their usefulness that ranks them among the most popular loans in the US, and we are sure, in the UK in a few years. You will often hear experts talking about how payday loans are most popular during times of financial turmoil and crisis and let’s be honest, there hasn’t been a bigger crisis in a while, which also contributes to the fact that payday loans in the UK are getting more and more popular and commonly used.

The goal of this blogsite is to provide the UK residents with as much info on payday loans as possible, info that will hopefully help them have only positive experiences with these loans and info that will allow them to search further into the world of payday loans and the practice of payday loans in the UK. The article before you is an introductory one that is covering the very basics and that is a great starting point for someone who is looking to learn more about payday loans but who does not have a lot of information about these loans.

We would like to start talking about payday loans with the most pertinent piece of information about these loans. And that piece of information is that interest rates involved in payday loans are high. When you compare them to interest rates that are involved in some other loans, you might even become scared when you look at the APR rates that exceed 2,000% and even more. We do feel, however, that we need to give some explanation as to why these interest rates are so high.

For one, they are not set by the government. In short, the lenders are left on their own when determining the interest rates that they are going to charge on payday loans that they provide. The second reason is that the number of people who choose not to pay back their payday loans and also the people who are actually defrauding the lenders is quite large, much larger than when you look at some other loans. Finally, and this is associated with another point we would like you to remember about payday loans – they are usually repaid very soon after taking them out ,which means that with more conventional interest rates, the lenders could not earn enough money to keep working and providing you with loans.

As we told in the previous paragraph, payday loans are repaid very soon, in fact, they should be repaid when you receive your next paycheck. On your payday, in other words, hence the name. These days, this is no strictly so, but the fact remains that payday loans are repaid very soon, usually within one month from taking them out. Our advice for anyone taking out a payday loan is to return the loan as soon as it is possible, as this lowers the amount of money you will pay due to interest rates.

Furthermore, it would be good to remember that payday loans are limited to £1,000 or even less in some cases. The lenders needed to protect themselves from defaults and this is one of the ways in which they have done it. Also, it should be noted that some lenders are more likely to lend you more if you keep doing business with them and if you continue to repay your debts in time.

Finally, it would be good to point out that payday loans are available only in the UK and that most people find this to be a much better option as it allows for more affordable loans and for more comfortably done payday loans.

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