With that in mind, we looked for the highest and lowest fee each lender charges. This gives a good baseline for how much you can expect to pay and how these lenders approach state regulations, especially in the states with no regulations. The fees we list apply to a 100 loan for a 14-day period. Often, you see APRs listed for payday loans as high as 600. Because you pay the loan back in two-weeks to a month, the APR serves mostly as a gauge of how expensive the loan is.
Payday loans charge a finance fee, which ranges from 10 to 30 for each 100 you borrow.
Interest rates. Interest rates on personal loans vary across the market, but as a rough rule of thumb, the more you borrow, the lower the rate. For example, you might pay interest of 9 on a £3,000 loan, but only 6 on a loan of £7,000. It can therefore make sense to borrow a larger amount, say £7,000 instead of £6,500. Just make sure you dont take on a debt that you cannot afford to repay. Term of the loan. The size of the loan will to some extent determine the term of the loan.
It is, for example, difficult to pay off a £7,000 loan in just one year as the monthly payments would be relatively high.
A payday loan is usually due on the date you receive your first paycheck after taking out the loan. However, some lenders require that loans be repaid within 14 days, even if you get paid only once a month.
Other lenders may allow you up to 35 days to repay the loan. What happens if I can't pay back a payday loan. If you can't pay back a payday loan, the lender might automatically withdraw the funds from your bank account. If there is insufficient money in your account to cover the charge, this could trigger bank fees.
If the lender is unable to recover the amount due, your loan might be transferred to an outside collections agency, and this transfer could take place in as little as 30 days. The collections agency could sue you for the amount due, and this could eventually result in property liens or wage garnishment.