Firms using daytime telly to offer short term loans for bad credit

Payday loan companies are using daytime television to market short term loans for bad credit – yet some have criticised these loans for their comparatively high interest rates.

Payday lenders have developed a name for themselves for offering short term loans to those in need.  Now, critics are rattling their spears for the next innovation from these companies – loans with 12-month repayment terms with high interest rates.

Several payday advance lenders have begun to offer these longer-term loans, all of which have in the neighbourhood of a 278 per cent APR.  Critics point out that this would mean a monthly payment of £79.09 on a £500 loan, which would equate to a £949.01 total payment over the entire year, calling the rates ‘extortionate’ because they supposedly take advantage of those with poor credit.

Unfortunately, what these detractors fail to realise is that those individuals who need to turn to short term loans for bad credit are the same individuals who find themselves ineligible for traditional long-term loans from a bank or building society. The credit crunch and resultant worldwide economic recession has crippled the credit scores of many Brits, as they have had to cope with cost of living increases coupled with other financial setbacks such as jobs losses and a lack of wage increases – meaning that many have had no choice but to borrow heavily in order to make ends meet.

Many of these instant cash loan providers will air their adverts on daytime television in order to reach their target audience – Brits who have suffered setbacks at work and find themselves home during the day, trying to desperately find a way to pay their bills while struggling with unemployment or underemployment.  Payday loans provide a much-needed service as budgets continue to be stretched tighter and tighter, as many Brits would be facing financial ruination due to an emergency that requires a financial expenditure at a time when every pound needs to go towards rent, mortgage, utilities, car insurance, food, clothing, or any number of other necessities.

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