Speedeloans Payday Loan Borrowers Pay an Average 1% a Day in Interest
The latest data from payday loans lender speedeloans.com has revealed that their customers pay an average of 1% interest a day on payday loans - less than the equivalent daily rate than some banks charge for an unauthorised overdraft.

HERTFORDSHIRE, ENGLAND, November 18, 2011 /24-7PressRelease/ -- Payday loan companies are often accused of being "legal loan sharks" with astronomical interest rates as high as 5,784.3% APR being cited*. However, the latest data from payday loans lender speedeloans.com (whose APR is 2243% making them the second cheapest lender in a poll of ten*) has revealed that their customers pay an average of 1% interest a day on payday loans - less than the equivalent daily rate than some banks charge for an unauthorised overdraft.**

Gary Miller-Cheevers, CEO of speedeloans, comments: "While there are some unscrupulous payday loan lenders in the UK marketplace, it is important for people to note that not all companies are the same. There are companies such as ourselves who provide a valuable and cost-efficient short term loan service.

"Around 48% of the population has less than GBP1,000 in accessible savings***. If a financial emergency strikes - whether it is an emergency veterinary bill; a broken down car or washing machine; or even payment for a school outing that has not been budgeted for - who can people turn to?

"For speedeloans, it is not about 'legal loan sharking' or 'preying on the underclasses'. Our customers are all working people with a small, short term cash need which is no longer serviced by the high street banks. That is why we pride ourselves on providing responsible and cost-efficient lending for people who need a fast financial fix in an emergency".

Data**** from the specialist payday loans company highlights that the average payday loans customer:

- borrows GBP221;
- has an initial term of 19 days at 1% interest per day;
- has an annual income of GBP21,000;
- is aged 32.

Other key data:

- 92% of all applications are declined;
- new customers are limited to borrowing GBP250 and a limit is also set at a maximum percentage of take-home pay;
- all customers are in monthly paid employment, with salaries electronically deposited in their bank accounts;
- 29% of borrowers are home owners;
- there is no gender differentiation - the split is 50 / 50;
- there is no geographic bias;
- while the median age of a borrower is 32, 39% of borrowers are aged 21-30, 36% aged 31-40 and 25% aged 40 plus;
- 55% choose to repay their loan in full within two paydays;
- 35% extend their loan past the originally agreed repayment date;
- 30% of those that settle their loans are repeat borrowers.

*Resource: Daily Mail 29.10.11
**As an example, as at today's date, the Halifax and Santander Banks charge GBP5 per day for an unauthorised overdraft of any amount (capped up to 10 days per each statement date for Santander Bank);
*** Resource: Norwich and Peterborough Building Society cited in Credit Action Report
****Period: Feb 2010-July 2011

Press Release Contact Information:

Gary Miller-Cheevers
SpeedeLoans Ltd
CEO and Founder
507 Centennial Park
Elstree, Herts
UK WD6 3FG
Voice: 0844 879 3199
Website: Visit Our Website