How costs can go mad with a payday loan Borrowing money is easy. Paying it back it a little more difficult. Lets look at how the cost of a payday loan can get out of control.

1. True Blue Loans
The cost of a Payday Loan

2. Payday Loans
How costs can go mad with a payday loan
Borrowing money is easy. Paying it back it a little more
difficult.
Lets look at how the cost of a payday loan can get out of
control.

3. Payday Loans
Lets say you borrow £500 as a payday loan.
You are paying the legal maximum of 0.8% per day interest.
You plan to have the loan for 30 days.
You expect to have to pay back, in a single installment, the
loan of £500 and £120 interest.

4. Payday Loans
But at the end of the month you can’t afford to pay £620.
So you roll the loan over and pay just the interest of £120.
You still owe the initial capital of £500. A the end of month 2
you do the same again and pay just the interest of £120.
They are not allowed to roll you over more twice, so they put
you on a repayment plan. Even if they freeze interest you still
will have paid back £500, plus £120. plus £120 = £740.

5. Wealth Warning

6. True Blue Loans
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