APR! What's the Deal? – A brief about payday loan

Payday loans are regarded by some as being controversial and this is mainly due to the high representative APR s that are offered by Payday Loan Lenders UK. However it may be viewed that the APR is not relevant as the repayment periods for payday loans are typically 31 days and not one year. Therefore the APR is not the actual rate of interest. If repaid on time the actual interest cost of a loan is usually 25%, although this does vary among the payday loan providers.The information below compares the actual cost of payday loans against the actual cost of long term loans repaid in installments, such as the loans that you would typically be offered by a bank for example. This is a good demonstration of how the APR can be

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