How can LendFair help reduce the burden and cost of payday loans?

January 5, 2014

Why can a LendFair term loan break the cycle of debt for certain individuals?

Let’s look at an example;-

 

Adrian has used Payday loans for a number of years to manage the peaks and troughs of his income and outgoings. He has even used a new (or regular) payday lender to repay a maturing payday loan. He uses up to 5 different lenders and has loans with, on average, three at any one time rotating the debts and lenders.  Adrian is not untypical.

Currently Adrian has the following loans;-

Wonga                       £230

Month End Money   £200

QuickQuid                 £280

A total of £710 owed in advances. His monthly service cost is typically £213 (it varies based on the exact date of advance/repayment and individual interest rates), typically 1% per day.

So each month Adrian pays £213 (without repaying 1p of his loan!) and may have to repay up to £710 of the advance(s) back, even if he substitutes old payday loans with new payday loans.

A LendFair term loan would allow Adrian to repay his payday loans and REDUCE his monthly outgoings, whilst repaying the loan off in full. Eg

Adrian borrows £700  over 36 months (and repays all 3 payday loans), requiring a monthly repayment of just £33.61 pcm ………….  he also doesn’t have to find the next payday loan interest of £213!!!! At just £33.61 he will repay the debt, IN FULL, over 36 months.

The cost to Adrian of continuing to use payday loans over the same period would be a whacking £7,668 in interest on a loan of just £710. This compares to just £509.96 on a LendFair term loan of £700 over 3 years.

But weren’t payday loans developed for short term debt? Yes, but in many cases they are used as hardcore debt at extortionate rates of interest. With a term loan you immediately reduce your outgoings and costs, and if your circumstances change you can repay a LendFair term loan early and get future interest charges rebated. Now how fair is that!

Too good to be true?  NO, it is true………….. it is a sensible and low cost way to break the cycle of debt. You will need a friend or relative to support you as a guarantor, but as long as you make your regular, low, monthly repayments a LendFair term loan can truly make a difference to your monthly finances.

www.lendfair.co.uk                                                Tel; 0845 475 7005 

 

Leave a Reply