Credit Unions Vs Payday Loans

21/03/2011


Total repayment due on a £300.00 loan over a 28 day period. based on rates at 1-2-2011. Credit Union rates are provided by ABCUL.

Organisation Amount Borrowed Total Repayable
Wonga £300.00 £390.00
Minicredit £300.00 £384.00
Speedy Dosh £300.00 £380.00
Credit Unions £300.00 £306.00

Payday Loans cost You a Fortune


Instant Loan companies such as Wonga.com who offer short term credit are charging their customers interest rates as high as 4.214%. This means that a Wonga customer who borrows £300.00 over a 28 day period at an interest rate of 4.214% could expect to pay nearly £90.00 back in interest.
At St Helens Credit Union our interest rates are set at 1.5% based on an APR of 19.56% see the table below for some typical loan examples.

Loan Amount Loan Period Total Repayable
£100.00 52 weeks £109.42
£300.00 52 weeks £328.30
£500.00 52 weeks £547.18
£1.000 52 weeks £1094.41