Payday Loans – The Choice Should Be Yours!!

By Author: Edwards Davisis
Total Articles: 7
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Are payday loans good for consumers? Should you be allowed to have one?

These are the questions that are now being asked in the world of payday loans lender UK. 2011 has seen a continued growth of the payday loan market as more people are taking out the easy access short-term loans. The usage of both the forms of payday loans i.e., the online payday loan lenders and the direct payday loan lenders have substantially grown. With this growth the debate has flowed as to whether these loans are good or not. What is it about payday loans’ that has everyone talking?

Now Payday Loans Lender UK do offer a number of attractive features. The application takes around 2 minutes in most cases, with the time taken from applying for a payday loan and receiving the cash cleared in your bank account can take less than one hour and you can have a bad credit rating and still be approved.

However there is a price to these attractive features which is a higher rate of interest than you would expect to pay at an institute such as a bank. Usually the charge for a payday ...
... loan would be £25 for every £100 borrowed therefore the actual cost of the loan would be 25%. This would be for a period of up to 30 days. The typical APR for this loan would be around 1737% which isn’t very helpful as the APR shows the rate of interest payable if the loan was to be taken out for a year and not 30 days. There are many Payday Loan Comparison sheets which can used to compare the above facts.

A reason why payday loans have been seen as controversial by some is mainly due to the high APRs that are advertised, a recent television advert from one lender advertised an APR of 4,024%.

There have even been calls from some MPs for a ban on online payday loan lenders or the direct payday loans lenders. This surely is a not the right way to go forward as there are many people who do find payday loans to be very useful. They can allow people in a tight situation, with a poor credit history, who need immediate cash to get access to cash, within as quick as an hour with some loan providers.

“These products are controversial, but we don’t agree with calls for them to be banned,” says Marie Burton, Financial Services Specialist at Consumer Focus.

“Outlawing payday loans could leave some borrowers vulnerable to illegal loan sharks.”

“Instead we need sensible safeguards now to stop borrowers becoming dependant on this high cost credit and prevent even more stringent controls being needed in the future. We also need banks to provide alternative short-term credit to suit the needs of cash-strapped consumers.”

Whether a payday loans lender UK is good for you or right for you will depend on your situation. They do work for most people however some people do use them wrongly and end up losing control of their debt. Either way, surely a ban on payday loans is wrong as it should be up to the individual to decide if a payday loan is right for them and not politicians.

Author Bio:

Edwards Davisis an expert in payday loans. He analyzes that Online Payday Loan Lenders are a quick and easy way to get a cash advance before your next payday. Payday lenders offer online applications and in most cases can provide instant approval decisions and same day cash transfers:http://www.paydayloansmadeeasy.co.uk