Payday Loans

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COVID-19 Advisory! About 8 months ago I borrowed around £90 to pay for a train ticket to see my now ex-boyfriend. What a slippery slope that was. I'm now approx £3,500 into payday loans across four payday lenders. I seem to have got myself into a horrible situation where I can only barely afford the interest repayments on these darn things every month.

The more you owe, the longer this repayment period will be. It can vary from 10 to 30 years, but in this case, it's going to be 25 years, and your new monthly payment will be about $270. That's a lot less than the $500 a month you would have spent on a standard 10-year repayment plan. But paying $270 per month for 25 years means you'll be paying a total of about $81,250 over the life of your loan. Subtract your original $50,000 and you'll see you're paying over $31,000 in interest, compared to the $11,000 you'd pay on a standard 10-year plan. So while simpler and lower monthly payments might give you some relief in the present, the trade-off is that it can cost you a lot more over time.

If approved, the customer will then authorize the lender to withdraw money from their checking account once the loan period is over, or hand them a post-dated signed check. Again, the repayment period is usually either two weeks or one month.

A. Payday lenders in many cases don't run hard credit checks. Payday lenders will often use applicants' income as an alternative way to assess the risk of issuing a loan. LendUp's application process does not involve a credit check that impacts your FICO credit score.