Payday loans explained
Payday Loans have gained popularity in recent times, such loans are also known as High-Cost Short Term Loans which are available online. Payday loans are typically for amounts between £100 – £1000 over a short term, usually repayable within 1-6 months.
Individuals usually take out Payday loans for unforeseen expenses that arise where their regular income will not be able to cover this expenditure. Due to recent changes in the economic climate such as working practices with more individuals working zero hour contracts or in the gig economy, more and more people are having to access alternative forms of credit such as Payday loans.
Payday lenders offer slick and fast applications, quick decisions with a quick transfer of funds into your bank account. Loan repayments are often taken via Continuous Payment Authority (CPA) which is different from taking payments via Direct Debit. Unlike the Direct Debit scheme, CPA payments do not provide guarantees to the borrower where there is a dispute.
Most Payday lenders provide loans at the FCA price cap which is currently set to a daily interest rate of 0.8%, this means you will be charged around 1200% APR for a payday loan which is the maximum legal amount a Payday lender can charge you! Payday lenders charge the maximum interest rates because they are commercial companies who are looking to make maximum profit and pay out dividends to their shareholders.
Who We are?
At Street UK we make responsible lending decisions to make sure we only lend to individuals who can afford a loan and by providing credit we are not over-indebting an individual.
Our personal loans are available from £200 to £1,000 payable over 1 year on a payment plan that suits your income so you can pay weekly, fortnightly, four-weekly or monthly.
A £300 loan over 3 months with Street UK can save you over £90, for someone who regularly obtains Payday loans this saving could add up over a period.
We have provided examples of how Street UK loans compare to Payday lenders and other High-Cost lenders below.