Here’s a horror story that should give you pause for thought. I’ve posted on the merits and demerits of payday loans for quite some time.
But I was quite surprised to read this story in the BBC News Website about one woman in the UK who used a payday loan whose interest rate was calculated at an annual rate of 2.6 million per cent:
York Credit Union’s Mike Horncastle has never seen a higher APR A loan firm has come under fire after charging one client an annual interest rate of more than 2.6 million per cent. An unnamed woman in York took out a one week loan for £320 with the firm Early Pay Day Loans, which attracted Ã‚Â£80 in interest over the seven-day period.
What’s the most interest you ever paid? Would you ever use a payday loan? Why or why not?