Payday Loan Calculator
Our Payday Loan Calculator is capped in order to reflect on the Payday Lender Loan Legislation which was introduced in January of 2015.
Payday Loan Rebate Calculator
Even though the Government has yet to finalize on their decision, it is looking very certain that payday lenders will have to repay any of the interest they have taken which is beyond the 100% rate. As with any other financial claim, it will simply only take a single case in order to set a legal precedent which will then lead on to payday lenders having to repay any payments which were above the 100% interest rate.
Our Payday Loan Rebate Calculator will provide you with both a capped figure and the original interest which was calculated on your payday loans, as well as the rebate figure that you could be entitled to.
If you are one of those who have taken a payday loan out, then we wish you all the best and hope that our calculator helps you receive the money that you are owed.
Payday Loan Calculations and Payday Loan Considerations
Whenever you are considering taking out a payday loan it's important that you:
- Use our interest calculator in order to be shown the monthly loan repayment amounts for a variety of terms and their interest rates.
- Take the time to review the considerations of the personal loan before you commit to any sort of loan agreement.
- Take some time aside and think about whether you really want to commit a portion of your financial future to repaying this loan.
Use our payday loan calculator in order to calculate all of your monthly interest repayments as well as comparing your loans repayments over certain periods of time. You will also be given the chance to compare interest rates over certain time spans including 1 year, 2 years, 3 years, 4 years, 5 years, and 10 years, which will accurately provide you with the monthly interest repayments.
Government Capping Payday Loans
On the 25th of November in 2013 George Osborne, the Chancellor of the Exchequer, announced his plans to legislate for a cap on the interest rates and interest costs of payday loans, which was part of his "Banking Reform Bill" initiative. Once the policy has been developed, the "Financial Conduct Authority" will have the ultimate power to cap payday loans.
George Osborne went on to say, "We have created a powerful new consumer regulator to regulate the payday lending industry and now we're asking them to set a cap on the cost of credit. That will make sure that hardworking people are served by the banking system". Martin Wheatley became the Chief Executive of the Financial Conduct Authority in April 2014 and is set to work on this new policy, hoping to have it executed by the 2nd of January in 2015.
On the 11th of November however, the policy was finally agreed on and published. The main pieces of information are:
- Whenever a loan is taken out or has been rolled over, both the interest rates and the fees mustn't be above 0.8% per day of the amount which has been borrowed.
- The default fees must not be above £15, although firms may continue to charge the interest after the default, but certainly not above the initial rate.
- Borrowers shall never have to repay more than 100% of what they have borrowed in both interest rates and fees.
Martin Wheatley assured that the price cap means that after the 2nd of January, anyone who decides to borrow money will never have to pay back more than twice the amount that they have borrowed. On top of this, if someone has taken out a typical loan over the span of 30 days, then they will not need to pay any more than £24 for every £100 that they had borrowed.
Policy statement PS14/16
Considerations When Taking Out a Payday Loan
- Affordability: Make sure that taking out a loan is what you want to do. Make sure that you really can afford to make the repayments, only you can know whether you are able to or not.
- Loan Security: Take the time to read the small print of your loan agreement. If you don't take everything into consideration you could be at risk of losing your home.
- Research: Look at different lenders when you have chosen to take out a loan. Many lenders have a variety of deals all year round, take the time to look at different lenders and decide whether or not you have found the right one.
- Interest Rates: Carefully check the interest rates of a lender. Even though the rates may be low, the span of the rate could be longer than you realize, meaning that you will be paying a lot more than if you were to go to another lender.
- Borrow Little, Repay Quickly: Repay your loan as soon as your can, and make sure that you borrow only the money that you need. The quicker that you repay your loon, the quicker you can get the stress off your shoulders.
- PayDay Loans: Try to avoid taking out a payday loan. Although it may seem like a quick fix at the time, it can lead to horrible financial issues in the future. Even though they offer you quick money, they will stop at nothing to destroy you financially. If you desperately need money, there are always other options.
- Don't Take Out a Loan At All: Even though in this current day and age taking out a loan can sometimes seem like something everyone does, it isn't. Although more and more people are taking them out, it doesn't mean that they are taking them out because they are necessary, they could be taking out a loan simply to buy concert tickets. If possible, avoid taking out a loan at all and earn the few pleasures of life.