Entries by Josephine Melvin

Overdrafts Are More Expensive Than Payday Loans

Payday loans have been heavily criticised in the media, charging representative APRs of anywhere between 1,000% to 6,000% before the FCA imposed a cap on these costs in 2015. This cap was placed to safeguard borrowers from being charged interest rates of over 0.8% a day. Whilst the payday loans sector have received much negative […]

What Is a Business Interruption Loan?

Business Interruption Loans have recently been introduced by the UK government to help businesses struggling financially from coronavirus. These loans will be running from March through to September this year, and can offer up to £5 million, interest-free for the initial 12 months of the loan. Many businesses, and individuals, have needed to borrow money […]

How Many Payday Loans Are Taken Out Every Year?

More than 5.4 million high-cost short-term credit (HCSTC) loans were taken out for the year up to the 30th June 2018. Last year, the FCA published a report into the HCSTC lending market, data for this being submitted by UK consumer credit firms. This was the first time the UK’s financial watchdog had published regulatory […]

When Should You Use a Payday Loan and When Should You Not

Payday loans are a type of unsecured, short-term loan that should only be used in certain situations. This type of loan was originally developed to help those who were financially struggling and waiting for their next payday – helping to keep them on top of certain payments before receiving their next paycheque. Payday loans can […]