What is a national payday loan ?

Payday lending or making payday loans is now a booming industry, and with life getting tougher

Hot Topics

What is Income Protection Insurance?: There are two variations of Income Protection Insurance: - Short Term Income Protection and PHI or Permanent Health Insurance.
How is a claim made under a life insurance policy?: All claims are made against the Life Company who issued your policy. You will find details of the claims procedure within the policy documents they provide with your policy and in the key features document.
Life Insurance laws in Scotland: The Law relating to Life Insurance and Life Assurance is the same in Scotland as the rest of the UK. This has been the case since 2001.
Complaints about a Life Insurance Company: If you want to make a complaint to a Life Insurance Company (that is the company which issues your insurance policy), you should write to their Compliance Director.

for many people each and every day, it's only ever going to keep expanding.
At the same time, it's an often unregulated business, with 17 states of the USA in effect banning payday lending altogether due to the apparent lawlessness of the industry.

It's not that hard to see why there is such a problem. Although such payday loans are intended to be short term arrangements only, basically getting you through to your next pay check, unfortunately, for many people, ( life assurance ) that's not the way it actually works out. And with industry average interest rates around 470% APR, one has to ask, why is this industry growing so rapidly?
The answer is that it is providing a service that is required, at a price that the consumers can afford; the actual APR is of no great interest to the customer, because their only concern is "Can I afford to repay the loan on my next payday"?
Why do consumers use payday loans? The answer probably falls into two parts:
First, because it is a fast, convenient way of getting quick cash (and now that it can be done online, it's even easier) and, second, because they probably cannot get credit any other way.
For a borrower with a poor credit history payday loans offer a lifeline when it is most needed, to pay those unexpected bills or to prevent repossession of an item that ( mortgages ) has been bought on credit for example.

Page 2