The Truth about Payday Loans

1
The Truth about Payday Loans

• By Pacific-Odyssey.co.uk

2
Payday Loans

• A payday loan is a loan that is designed to be
  paid back on your next payday.
• Typically it is a small loan of up to 500,
  although some lenders will let you borrow up to
  1,000

3
Payday Loans

• Most Payday Lenders are charging the maximum they
  are allowed being 0.8 per month.
• If you borrowed 1,000 for 30 days at 0.8
  interest per day you would pay 240 interest in 1
  month!
• In addition, you may have to pay other fees,
  although the total cost of the loan cannot be
  than the same as the amount borrowed.

4
Payday Loans

• The danger of a Payday Loan is that the loan
  agreement will expect you to repay the entire
  loan in a single payment on your next payday.
• So that 1,000 loan is going to repaid in a
  single payment of 1,240!

5
Payday Loans

• So you cant afford to repay 1,240?
• You may be able to roll the loan over and only
  pay the interest due of 240. But you will be
  expected to pay 1,240 on your next pay date.
• Even if you can afford it, you will have paid
  back 1,480 in just two months!

6
Payday Loans

• My Advice?
• Take out a short term loan from a company such as
  Pacific Odyssey (www.pacific-odyssey.co.uk)