Payday UK Options Can Help You Out

In the current economic climate, anything which can provide people with some financial breathing space has to be seen as a positive thing. Many people are struggling to make ends meet every month but there are also people that find themselves a little short from time to time.

People who are experiencing continued financial difficulties need to seek proper guidance and support. There is no point in looking for a short term financial measure when the problem is continual and on-going. It can be difficult and painful but there is support available for people who are looking to face up to their financial problems.

If you don’t have an ongoing financial problem but find that there are occasions where you would benefit from having access to an advance of your wages, there may be a handy solution. There are a number of payday UK options for people to choose from. These solutions should not be used to provide ongoing financial relief but there are times when they can help to ensure people’s lives tick over nicely.

We can all face unexpected bills from time to time. Whether it is a problem with the car or the washing machine, an unexpected school trip for the kids has come up or there just seemed to be too many outgoings at one point, the premise of getting access to money and then paying it back as soon as you are paid is a sensible one for many people.

Take care of your finances in the right way

Many people find that with a minimal amount of juggling, they can take care of any financial issues that arise for them and this is where the payday loan is of considerable benefit. There is a charge for this service, which is perfectly understandable, but people who back on time, will find that the rate of interest or standard fee is of a reasonable level.

Anyone who has read about payday loans will probably have heard about the huge APR that comes with these products. Given that the vast majority of payday UK options are not taken out for anywhere near a year, the APR is not entirely relevant. It is required to be stated by law in all advertising and promotional material, and it is always of benefit to provide people with all the information they could need to make a valid decision.

However, there is an element of scaremongering when only considering payday loan options in this manner. Most people will accept that receiving short term financial assistance to tide them over is worthy of paying a small fee and for most clients, the service is welcome and affordable.

This is where it is important that people understand their own circumstances and their own needs. In the right situation, use of a payday loan is often the easiest and most convenient way to solve a problem. This is to be commended as the more reliable and viable options there are for people to take control of their life should be commended.

However, it is when people need sustained financial support yet find that they have no other options but to look for payday loan assistance, that problems can start to build. This is where there needs to be more work at explaining how payday loans are a short term solution, not a long term solution. It would also be of benefit if the banking industry, and the Government, took a greater degree of responsibility for many of the problems that people are facing in the United Kingdom these days.

This is an extremely difficult time for people in the United Kingdom, which makes having options a positive thing. All of the options may not be relevant or helpful but offering consumer choice is something that will make a difference to people, as long as proper information is provided to users.

Loans Direct To Your Account When You Need It Most

Even though there are a number of benefits that come from taking out a short term loan, one of the most important aspects is the immediacy of it. Knowing that you are likely to receive an answer to your application in a short period of time is the first plus point of this service. Applying for loan or financial assistance can be a trying time for many people, so it is helpful to get an answer as quickly as possible. If the answer is positive, the funding will be paid into a person’s bank account at short notice, so there is no need to wait. Although the short in short term loan applies to the length of time the loan is taken out for, short also applies to the speed of service in taking out a loan.

There is no doubt that having loans direct into your bank account is the most convenient way. Getting a loan paid in cash could be a bad aspect for many people, as this would provide too much temptation. Some people are not very good at holding on to money that is in their hands and before they know it, the money that they needed for an important product or service could be gone. This would only exacerbate a person’s financial concerns, so it is not something to be encouraged. Placing the loan funds directly into the account of the person that needs it will reduce the temptation on offer and it should ensure that the money is used for its intended purpose.

Given the ease of transferring money form a bank account to firms and individuals, no matter what form of payment you have to make, having money in your account is sensible. Having cash in your hand, wallet or purse provides no barrier to spending this money. However, when you have to physically take money out at an ATM or transfer it to someone else or another firm, there is an opportunity for people to think about what they are doing. When it comes to financial decisions, providing people with a bit of time to weigh up their options is often the most important aspect.

Don’t make rash decisions when it comes to loans

Far too many people are prone to making impulse buys or rash decisions when it comes to cash. Providing loans direct into a bank account provides some form of barrier to the rash decision making that may cause a person more problems in the long run. It is important for people to think about the big decisions, especially when it comes to finance. If a situation arises where a short term loan is the best solution, it is important to use the loan for its proper purpose. This is where the placing of a loan directly into an account is of great benefit.

It needs to be said as well that receiving a loan directly into an account is of great benefit when it comes to speeding up the process. With many loans being finalised online or over the phone, receiving this money directly into your account concludes the loan process faster and ensures that there is no need to engage or interact with other people. Human interaction only tends to slow things down and for many people, there is a discomfort that comes from engaging with others. This is where having loan funds placed directly into a bank account can help to make life so much easier for many people.

There is no doubt that there are many aspects of payday loans that some people are uncomfortable with but there are a lot of benefits to be obtained from this style of loan. Knowing that the money you have arranged will be coming directly into your bank account helps people to plan ahead and act accordingly. This is of considerable benefit when it comes to looking after your finances.

Why Choose Instalment Loans

Instalment loans have been around for a very long time and are the most popular type of loan in the financial industry. There are many benefits of taking out an instalment loan and some of which I will explain about in more detail below:

With an instalment loan it can still be considered a short term loan but there are extremely flexible with the repayments, you can take the loan over a period that suits you. My advice would strongly be to consider your finances a long with your disposable income and then choose an affordable instalment loan that can be comfortably paid back over a time suitable. Also with an instalment loan you can pay back the same amount each month so you know one hundred percent where you stand with them and if you want to make any early, additional or higher payments then that is fine and you will not be penalised for this.

When an instalment loan is taken out, you should receive fantastic customer service, a customer has this product for at least a few months and due to this the customer service you should receive should reflect this, this is not really a short term loan unless a customer treats it as one and repays the outstanding balance earlier than previously agreed. If you are a good customer and you make the repayments as agreed then the company should reward this and offer you loyalty discounts and maybe more financial benefits that can include higher lending amounts, lower discounted rates and perhaps better repayment schedules and terms for the customer. This is all part of providing a customer with first rate excellent customer service.

With a vast amount of instalment loan lenders you can firmly trust them, when borrowing a sum of money it is always extremely important that you can trust the lender, you do not want to be paying fees for your loan so make sure that you are dealing with the finance company directly and you are not dealing with a brochure or any other company that is not the direct lender. When taking out an instalment loan the sums of money are typically higher than say a payday loan and there really are more companies that you can trust. Make sure the company you are dealing with for the loan in question is a member of the CCTA which is known as the Consumer Credit Trade Association.

Depending on your financial needs, an instalment loan may not be for you, you need to make sure that you need the loan and have the financial means and are willing to pay the loan back. I believe they are must better and much more appealing than a payday loan, it may take longer to pay the overall debt but at least people can afford to and once this debt is cleared customers would have built up some of their credit file and will soon realise other financial benefits once a debt is repaid.

Instalment Loans vs Payday Loans

There are a few different loans out there for the consumers to consider when deciding if they need a loan, there are also other types of lending finance to consider when applying for a loan and these include car finance and credit cards, some people may confuse payday loans with instalment loans and it is my job to work out the benefits of both products, the negatives of both products and then move on and discuss the similarities between the two.

A payday loan is a short term loan borrowed by a customer as a short financial way of borrowing and to be repaid within a thirty day period on the customer’s next paydate. A payday loan should never be used as a long term financial solution. Interest on a payday loan normally works out to be between twenty five and thirty percent, payday loans are easy to obtain and providing an application is successful a customer should normally receive their amount in their chosen bank account within a couple of hours but in some cases customers can receive their money within a few minutes. Payday loans are normally granted and issued out to customers for amounts between £100.00 and up to £1000.00

However an instalment loan is a more long term financial need and solution for a customer, you can get instalment loans normally from around £100.00 and up to £1,500 and anything up to £25,000 through some major banks and other financial lenders. The duration for these types of loans are normally between a few months and up to a number of years as chosen by the customer. An instalment loan is a much more flexible payment agreement than the mentioned payday loan product. It all depends on the financial lenders as oppose to when funds should be received by the customer, in some cases documentation is needed and it may take a few days to receive your funds where as other companies can grant you the funds as agreed within a couple of hours. I have found that the larger the sum that has been applied for the longer it may take to be paid to the consumer. As an instalment loan is normally paid over a much longer period the interest rates are normally lower due to the fact that more repayments need to be made.

As I have described both the products I have to now mention that they both have certain similarities, for example both can have high interest rates so check thoroughly before deciding if a loan is right for you, both can normally be paid out quickly to a customer but both may require forms of documentation being received before the application can be successful. There are a range of different payday and instalment loans out there and some cannot be trusted so be careful, also with each loan potentially there could be brokers involved so make sure you know what you are dealing with and that you can make easier loan applications directly with certain lenders and avoid any third party involvement. Also similar with both these separate products is the approach to dealing with any outstanding repayments that may occur, both products will have people chase the debt daily by making contact via text, email and via the telephone on any contact information they have on a customer. If repayments continue to be missed and are still remaining overdue then these debts may be passed to outside sources such as debt collection agencies and if repayments on payday loans or instalments loans are missed it will have a negative impact on that persons credit file. And with any repayments and defaults that show up on a customer’s credit file will remain on there until the balance is settled in full and with these on the credit file it may be harder to gain credit elsewhere.

A long with these similarities, there are many differences between payday loans and instalments loans including the terms of the financial agreement, a payday loan is considered as a short term loan that has to be paid back within a thirty day period, this means the interest rates can be very high, in contrast an instalment loan is meant to be paid over a much longer period, the interest rates will not be as high but the loan will take longer to be paid back to the specific Creditor. Another strong difference between these two financial products is the customer service factor. It has been proven that the customer service is of a much better standard with a longer term instalment loan. It has also been proven that there are much more loyalty credentials with an instalment loan for example once an account is cleared they offer more benefits than a customer who has paid off a payday loan in full. There are a lot more instalment loan finance companies that you can trust out there than that of the payday loan industry, instalment loans have been around for a lot longer and you know where you stand more with an instalment loan as your repayments stay the same monthly and they are much easier to keep track of any monthly instalments someone makes.

So in conclusion I have shown that both payday loans and instalment loans have their benefits as well as some negative factors, I must however state that for me the instalment loan is overall the better option, it is easier to handle your finances as the repayment is easy to work out and you don’t have to clear the full balance within a month like you would have to do with a payday loan. You may have the debt for a longer period but as it is affordable repayments a customer has to make it is definitely the better option for me. I feel that the payday loan industry is dying out slightly and with the instalment loan currently the longest loan in the market place I also feel much safer in this financial industry.

PayDay Loans UK – How to Spot The Bad Eggs!

The PayDay Loans UK market has grown massively over the last few years, thanks in part due to how the internet has become essential to everyday life. Years ago the internet was more used to provide factual information, which was not readily available and to provide entertain to the masses. Now however the internet is used to provide the basic functions of everyday living. This includes things such as shopping; you can literally buy everything on the internet today, to gaming and of course banking.

It is therefore no big surprise that with the management of our bank accounts being simply a click away that the online world of borrowing has expanded at a rapid rate also. In fact it would be fair to say there is now a huge number of lenders available to borrow a small amount of cash over a small period of time. This is wonderful in many respects because it gives consumers a wealth of choice and variety in terms of the products that are on offer, however, it is important to understand the negatives associated with this type of lending. The PayDay Loans UK market is vast and the products which exist within it differ but the fundamentals of the product proposition are the same. Therefore knowing how to ensure you choose to borrow from the best company can prove somewhat difficult.

That said there are key features you should look for when deciding upon a short term loans provider, and more importantly features to avoid:

·         FEES – In the current market there is absolutely no reason why a lender should be charging you a fee simply to lend you the money; that is what the interest is for. If they charge for depositing or extending the term you may as well rule them out.

·         UP FRONT INTEREST – The Reputable PayDay LoansUK lenders will offer a daily rate of interest instead of charging a fixed amount regardless of when repayment is made. This is something important to consider if you are thinking you may be able to repay the money earlier than the agreed date; every penny saved counts.

·         FLEXIBLE REPAYMENT TERMS – In the current market you will find a mixture of repayment terms from simply a month to up to a year. It is therefore important to consider which repayment option realistically suits you best, just because the term is shorter, it may be the repayment isn’t affordable so pick wisely.

·         LENDER NOT BROKER – It is vastly important you are clear to whom you are providing your details to at the point of the application. Within the PayDay Loans UK market there are a massive number of brokers who will look to use your information to find you a loan with a different company, separate to themselves. These Companies often also charge fees so be sure to investigate fully.

·         TERMS AND CONDITIONS – It is also important when deciding to enter into a short term lending contract that you are happy with the Terms and Conditions of the loan. Ensure you read these and if you’re not sure of any of the information, call the company and ask them to explain further.

If you are able to consider all of the above when investigating the PayDay Loans UK market I am confident you will find a product which is tailored to your individual needs; happy hunting.

Pay Day Loans – Managing your debts

As we all know several years ago there was an explosion of new lenders in the short term lending market, these lenders all offered the same thing known as a Pay Day Loans. Within a few short years the number of companies offering a small amount of cash over a short period of time was endless, suddenly there were hundreds of companies ready to lend you money when you needed it the most. That said it soon became apparent that whether you ‘needed’ the money or in actual fact just ‘wanted’ the money, made no difference, it could be yours within just a few short hours. This itself opened the online world of lending up to a massive growth as consumers were suddenly offered cash simply for completing an online form and if they wanted, could lend from many companies, ultimately acquiring a lot of cash to be repaid when their pay day rolled around. It’s no secret that as a result of this somewhat ‘easy’ cash consumers found themselves in a position where they had borrowed more than they could realistically afford.

Often this predictable outcome was blamed on the lenders themselves, stating they should not have lent in the first place. That said I think it’s important to recognise that a level of accountability should be taken by the consumers themselves also. As I touched on above the massive expansion of PayDay lenders UK that became available presented consumers with a vast number of options when selecting who to borrow money from. I think for some, the temptation was too much, instead of borrowing for a specific purpose, such as a broken car or time off work unexpectedly, consumers used these sites to fund deposable income. Quickly it become easy to borrow an extra £300.00 for a weekend away or a quick £100.00 for that pair of shoes that simply had to be brought. This resulted in consumers building debts which needed repaying and fast to avoid growing interest charges.

The important point to focus on here is that such consumers are not alone. As the Pay Day Loans UK market becomes more regulated and lenders become more selective in their lending decisions hopefully the number of consumers with PayDay debt will reduce but in the meantime it’s important to understand that there are ways to manage such debt, without running away from it.

Although frequently PayDay lenders UK receive a very negative response from the media and are held in a low regard by many financial experts, it’s vital to understand these lenders do actually want to work with their consumers who are struggling to make repayment. Many of these lenders have dedicated internal representatives who are ready to advise of a mutually acceptable repayment agreement for the outstanding balance. I would always recommend the consumer call their creditors and discuss the situation they are in; after all if the lender doesn’t know you can’t afford to make repayment, why would they assume you have the intention to? Often consumers are pleasantly surprised at what can be agreed which is suitable to both them and PayDay loans UK based lender. Ultimately it is crucial to remember by working and communicating with PayDay lenders, all parties concerned can move forward with peace of mind that the debt can, over time, be repaid. 

How to End up With a Massive Payday Loan Balance

A cynical article I am sorry to say. I normally try and write positive articles about borrowing and lending money, but sometimes I have to vent about payday loans.

So lets write a story about Mr Egg who is a typical payday loans trainee. He has never had a payday loan and we are going to show him how to ruin his credit rating and file and end up owing a lot more than he planned.

Lets begin.

It is the middle of the month, any month, and Mr Egg’s mates have invited him to an evening out. They are planning on going to the bowling alley and then go out for a curry. Mr Egg does not have much money left before his payday and he feels he needs, no wants, £100 for the evening out. Quite a lot I know, but they want to make it a great evening and there is nothing worse than running out of money half way through the evening.

Mr Egg decides he needs to borrow £100. He talks to his bank , they are not interested, he asks his parents, they say no, so he looks online at payday lenders. He finds a good looking site with happy faces on the home page and some great testimonials from some made up customers.

It is easy for him to work out how much he can borrow over how many days. So he could borrow £100 until his next payday which is 15 days away. He sees that it is a fixed interest loan with 30% interest. Bit pricey he thinks but what the hell, he will have a great evening out. He then thinks, about the next weekend and decides he might as well borrow an extra £50 for that one. So he selects £150 and sees that he has to pay £15 to transfer the money to him, but he will get the money today, so that’s okay. He sees that the £15 is deducted from the amount sent to him, so he will be sent £135. Umm, that is not so good, he really wanted the full £150, so he increases his loan amount to £200.

He completes the application and is sent the £185, being the £200 minus the £15 transfer fee.

Of course he spends all the money as we expected.

Along comes the end of the month and Mr Egg thinks about that loan. His head still hurts from the hangover, but it was a great weekend. He gets an email from the payday loans company he borrowed from. He owes them £260! This is made up of the original £200 borrowed plus 30% interest. He does not see how he can pay that much back in one go. He earns £1,000 per month and can’t afford to repay the whole loan plus interest in one go.

He rings up the loans company and explains his problem. No problem they say, they can “extend” the loan for another month. All he has to do is pay the interest of £60 and then nothing until the end of the next month. Brilliant thinks Mr Egg.

He pays the £60 and gets on with his life. Middle of the month again and he wants to go out with his mates again. He does not even think about the laon he still has. It was easy borrowing last time so he goes to another lender and borrows another £100 at 30%. This time he does not have to pay the £15 transfer fee which he feels is good.

At the end of the month Mr Egg owes the first loan of £200 plus the second loan of £100, so £300 plus £90 interest. This is not so good. No way he can afford to pay back £390. He will rollover or extend his loan again. Which he does, he pays the £90 interest and he is safe for another month.

Mr Egg is not daft, he knows that he needs to get rid of some of the capital or he will be in paying interest forever. He decides that he will try and pay a chunk of capital off as well. But disaster strikes, his car breaks down and needs a new radiator. It will cost him £200 to have it fixed. This is bad, really bad. He has no choice but to take out an emergency cash loan, yes, another payday loan.

So now he owes £500 and all he has to show for it is a new radiator in his car.

Along comes the end of the month. He has to pay the £500 plus £150 interest. He can’t do it, so he rolls over the loan again and pays the £150 interest. He has now paid £150 and still owes £500.

At the end of the month he does pay off 10% of the capital. He pays the £150 interest and £50 capital, a total of £200.

At the end of the next month, he does the same and pays off 10% capital being £45 and £135 interest, a total of £180. This is getting silly. He has paid £530 and still owes £405. He decides he has paid enough and they can forget it. At the end of the month he does not pay anything – that will show them! Oh dear, Mr Egg was not thinking smart. Both lenders have a clause in their terms and conditions that allows them to add £15 each for him not paying and they chase him for the money. He explains that he can’t pay and after 15 days they add another £15 each.

At the end of they month he owes over £700! How on earth did this happen. Well he had to pay two months interest and the £60 of fines for being late. He had already paid out £530 and now he owes over £700, a total of £1,230. He is in trouble. At the end of the month he pays the interest of £210 plus 10% of the capital being £70. He now owes £630 and he has paid £810. This can’t go on.

Next month he does the same and pays off £189 interest and £63 capital, a total off £252. So now he has paid £1,335 and still owes £567. He still has not paid off the interest, let alone the capital.

The story is not unique. Many people get themselves into this level of mess. Yes Mr Egg needed the third loan for his car repair, but he really did not need the other two loans.

The Dark Side Of Payday Loans

All those happy cheery sites, on television, on Google, on the back of buses, all telling us how marvelous their payday loan is and how quickly you can get the money.

While I am fully aware that we live in an instant gratification world where everything must be delivered immediately, be that food (Mac Donald’s, Burger King, KFC) or communication with friends (Facebook, My Space), mobile phones, texting all instant; TV programs – notice how every program has an introduction that basically tells you what is going to happen in the program. Everything is immediate and now, never is the story wait and be patient.

Now don’t get me wrong, I do like a fair bit of the instant delivery world, I love getting my pizza delivered exactly when I say it should be delivered and I love the way that I can download any book in seconds to my Kindle, but I am not sure that we should be setting expectations that loans will be delivered within 15 minutes. Ok so Payday Loansare advertised as emergency cash and by definition an emergency needs urgent attention, but the consequences of getting that “emergency cash” should be carefully considered and you can’t do that in 15 minutes.

                                                                                                    

paday loans

The loan agreements, both written by the lenders and demanded by regulators, make painful reading, page after page of lawyer produced “protect the writers butt” wording that no sane man or woman would ever admit to understanding have to be agreed to before the loan can be issued. I have read more than my fair share of these documents and there is no way on earth that these could be read in less than an hour or two. So how can a lender rely on a document that is almost impossible to understand and also guarantee to get the money into your account in 15 minutes? The reason is because the law lets them. The average lender really does not care if you have read and understood the documents and the implications of taking that loan. They need you to say that you have read the Terms and Conditions and that you fully understand them and the moment you have ticked that box to say you have, you are committed and the lenders responsibility ends. They just want you to take the loan, extend it a few times and pay it back. They do not want you to think about the 30% per month interest, or the £5.50 transfer fee or the £25 penalty fee that you will incur because you could not pay on time.

There is a lot of talk with the industry about lenders undertaking Affordability Checks with the applicants. Some sites are taking this seriously but it seems that most are still totally relying on the consumer to decide if they can afford the repayments. I think we can all picture the poor customer, needing emergency cash and carefully considering if they can afford the repayments – I don’t think so! They need cash and they will worry about paying it back at a later stage, just not now. The responsibility must fall to the lender and they should be forced to undertake true affordability checks.

An affordability check should be part of the application and the inputs given by the applicant should be used as part of the decision making process undertaken by the lender. The check should not be a stand-alone piece of data, it should be embedded in the application form and should be crossed checked with other data such as the applicants credit file. If the affordability checks show that the applicant cannot afford the repayments they should either be rejected or offered a lower amount of money.

Whilst this may upset the applicant at the time of the application, it will stand them in a much better position on the day the repayment becomes due. After all, it is better to think you need £300, be offered £150, survive and manage to make the repayment rather than be allowed the £300 and default on the loan because you really have no way of making the repayment.

Unfortunately, a lot of lenders want the customer to borrow as much as possible regardless of the customer’s ability to repay. As long as they can get the customer to pay the interest each month they really do not care what position the customer is in financially. The best possible customer for a payday lender is one who never pays off the capital but just keeps rolling over the loan each month, paying just the interest. This way they cover their exposure on the capital and acquisition costs (advertising, data costs etc.) in a couple of months (typically four months) and then the rest is bottom line profit.

Another trick of the lenders is to offer top up loans. What they will often do is watch a customer rollover or make a few repayments to the instalment loan or make a few payments to the line of credit and then they will contact the customer and offer a top up loan or an increase in the customers line of credit. Often this is done without any additional affordability checks, so even if the lender undertook checks as part of the original application they don’t bother on subsequent loans or top ups. This is really unfair on the customer as they may well have been managing their finances and it is the lender who pushed them over the edge into the cycle of debt.

The sad thing is that there really is a role and place for payday loans and payday lenders, but greed has driven these companies to exploit their customers without even realising it. If the lender just thought about the impact of their greed and desire they would have a far happier customer base and probably have a far more successful business.

The regulators in the UK are planning on bringing in tougher requirements for UK lenders offering Payday Loans and I am sure that affordability will form a large part of the new regulation. I just hope that they regulator takes a balanced view and ensures that customers need to be responsible as well as the short-term lenders.

About the author:

Kieran Moulden is the Founder and Managing at Fidelity Works which owns a number of instalment loan brands including TheMoney.Co (www.themoney.co) a company offering instalment loans over 3, 6 or 9 months, with fixed repayments and no fees, just daily interest.

Wonga is it a name, slang for money or the route of all evil?

There was a time, not that long ago actually that the word Wonga was nothing more than a slang word used to describe money. It had no more meaning than words such as cash, reddies or spodoolies (not sure if that is how it is spelt). But then a company who offered payday loans was formed and they changed their name to wonga.com. This company grew and quickly changed our perception of the word Wonga, probably forever.

The company managed to trademark the word wonga.com so it is theirs forever. I guess they struggled to trademark Wonga without the .com as that would be like trademarking the word coppers when everyone knows it is a slang term for the police.

Many years ago in the 1980’s there was a brand of slimming biscuits called Aides. This was at a time before any of us had heard of HIV or anyone being HIV positive. The biscuit company disappeared or at least dropped the name Aides as the word aides started to mean something completely different. I think sometimes things can work the other way around as it has with the word Wonga.

Wonga

It is clear that wonga.com is not the only payday loans company out there, but they are pretty well the only one really ever mentioned in the press. It is cleat that the press loves to hate Wonga and I think they really do hate them. I see every day articles about how they offered a loan to a child (of course they didn’t actually offer a loan to a child, what I suspect happened was that somehow the child’s name was on a marketing database and the child got sent a mailing or an sms). But the truth is often irrelevant to the press, as they just want a story. A line I have always enjoyed is “why let the trust get in the way of a good story” and that is sometimes how it is the UK.

So Wonga are the route of all evil according to many commentators. They charge outrageous rates of interest and make load of money. Funny as I always thought that was what happened in a capitalist society. The stockbrokers in the city, the banks, the oil companies, the insurance companies all do the same. They charge a lot and make a lot.

I read that wonga.com is preying on poor people and forcing them into debt. Now I have been out and about in London and other cities and I don’t see too many people dressed up as puppets forcing innocent people into side alleys to get them to sign a loan agreement. Maybe when the press say that they are forcing people into debt, they mean that these people say an advert, responded, lied about their finances, got the money and couldn’t pay it back or refused to pay it back. So does that make Wonga bad? No of course it doesn’t. They are just easy targets because they are hugely successful.

What has always surprised me about Wonga is how quickly they became market leaders. There were and are other companies who have been around longer with massive financial backers and highly skilled marketing teams who have nowhere near the profile of Wonga. Look at Payday UK (Month End Money), they have been around for a lot longer and you rarely, if ever hear them mentioned in the press. They are sizable organisations, turning over hundreds of millions of pounds yet they keep their heads down and do not draw attention to themselves.

So is it that Wonga actually deliberately tries to attract the presses attention? It had been said many times that there is no such thing as bad press and if this is true then the attention that wonga.com gets must be worth millions of pounds of marketing budget. Maybe it is as simple as that, they are generating the negative press attention deliberately as it must make quite a lot of people thin to themselves maybe I should try them?

But whatever the truth about the negative press, there is no way to get away from the truth that they are incredibly popular with their customer base and many people search for them on the internet each day. It is a fact that more people search for the term Wonga than they search for the term payday loan. That is an incredible position to be in. It is the equivalent of more people searching for ant rather than insect. OK not a very good example I agree, how about more people searching for “package holiday, to Alcadia, staying on the ground floor of a 4 star hotel, with room facing the sea and free evening drinks” than “holiday abroad”. The marketing of Wonga has and is fantastic.

There maybe has never been a brand and or company that is so hated by politicians, newspapers, charities, the church and armchair experts yet loved so much by its actual customers. I am certain that most, if not all, of the people who hate wonga.com with a passion have never tried its service or needed money in a hurry. Whilst I appreciate that they believe that they are protecting people who are in financial difficulty, the trust is that none of them seem to know what it is like to be in need of money and have nowhere to go because the banks won’t lend to you, the tax man has taken all your money through VAT, fuel duty, PAYE and every other tax there is, so you borrow from payday loans companies. One must remember that a lot of the people who are looking to payday loan companies have very checkered credit files. A number of them have taken loans and defaulted, or have CCJ’s for non-payment of goods and so the payday loan companies are taking quite a risk in lending to them.

However bad people believe that short-term lenders are, they should remember that they don’t go around to peoples houses and break their legs. The illegal lenders do.

About the author:

Kieran Moulden is the founder and Managing Director of True Blue Loans (www.trueblueloans.co.uk), a company offering instalment loans over 3, 6 or 9 months, with fixed repayments and no fees, just daily interest. He is passionate about ensure that consumers get a fair and honest deal when dealing with short term consumer finance companies.

Payday Loans

It is really horrifying having no money when bills are due. It is worse when you know that your payday is nowhere near, or will delay for some time. Payday loans are a great lifesaver when you find yourself in this or a similar predicament. There are many people that have dealt payday loans a bad reputation due to their operations. In essence, payday loans are the best thing that could happen from you incase you find yourself in a payday dilemma. These can be obtained from many sources. The best sources are determined by what kind of loans you are looking for. There are benefits that come with using these loans.

Payday Loans

There are all sorts of payday loan lenders in the market place today. It is however very important to pick a lender carefully. These loans come with their own accrued interests that can really weigh you down if not well thought through. Online lenders are available for these loans. These are seemingly quicker than taking trips around stopping at every loan lenders joint to check the terms. The online lenders will also process your loans quickly with verified information. Make sure you pick a certified lender on a secure site with favorable terms before you commit to take anything from them.

Most payday loans for bad credit will come with simple terms. The most common of terms is having a consistent pay slip in a permanent position at your work place. These loans will not apply unless you actually have a pay day. The loans will also be determined by how much you earn. There are ways to verify your pay slip to ensure that your paperwork is genuine. The best terms of conditions will be determined by the rates given for paying back the same loan. Most of the rates will linger between 15% and 30% depending on the lender.

True Blue Loans

One is able to get money quickly. These loans save time in the case where the money needed is an emergency. Most of the loans will take hours to days to get processed depending on various factors. The fact that you can have your loan in a matter of hours is a big advantage.

These payday loans for bad credit also allow you to close deals or solve issues despite the lack of collateral. The only collateral needed is the verification of a consistent pay slip.

They have affordable rates making them a good option when it comes to emergencies and sorting out bills. This will also depend on the lender you chose to work with.

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About the author:

Kelly Hollingsbee is the Operations Manager of True Blue Loans (www.trueblueloans.co.uk), a company offering instalment loans over 3, 6 or 9 months, with fixed repayments and no fees, just daily interest.