payday loans – how to get and more
Take note that payday loans are an expensive way to borrow. Never take out a payday loan unless you’re certain you can repay it on time and in full – otherwise, the costs can soon spiral out of control.
And then the money is paid directly into your bank account, and you repay in full with interest and charges at the end of the month.
Increasingly though, you can borrow for longer periods – typically three months (but longer loans are available) and repay in instalments.
What all these loans have in common is they are high-cost and short-term, and often for small amounts.
A payday loan is expensive and could make your situation worse if you can’t afford to pay it back on time. You need to think carefully before choosing one.
What exactly payday loans cost you
The cost of payday loans is capped by law under rules made by the Financial Conduct Authority (FCA).
Don’t forget that the law limits the amount of interest and default fees you can be charged.
However, someone taking out a loan for 30 days will pay no more than £24 in fees and charges per £100 borrowed. If you don’t repay on time, the most you can be charged in default fees is £15 plus interest on the amount you borrowed.