Payday Loans

What is a Payday Loan?

A payday loan is usually a last resort loan or for emergencies. These loans usually have high rates of interest so the best way to explain them is to use a simple example.

Example: You borrow £20 from a mate on Monday and pay him back the £20 a fortnight later. To say thanks you also buy him a pint that costs £3. This is similar to what payday loan lenders charge and works out about 15% interest a week.