As higher income earners begin to suffer, speedeloans fills the gap left by profiteering banks
Speedeloans, the online payday loans company, is filling the gap left by banks for cost-effective short term loans - and is offering cash-short Christmas shoppers a financial lifeline of a cash advance with amounts up to £500.
Gary Miller-Cheevers, CEO of speedeloans.com, comments: “As the cost of living increases, combined with what seems to most people as even less help available from their bank, this is now starting to bite hard into the budgets of people in higher income brackets.
“This is backed up by research* which highlights how since 2008 there has been a 100% increase in overdraft borrowing among wealthier families, with one in three relying on their overdraft - which is double what it was three years ago. The study also shows that nearly half of these people (47%) have applied for credit in the last two years.
“Certainly, nearly a quarter (23%) of our customers earn more than the median national salary**, substantiating two facts. The first is that even so-called ‘better off’ people are feeling the pinch; and the second is that payday loans are not used solely by low income earners.
“It really is a sorry state of affairs – banks are giving their cash-strapped customers very little help, and are profiting out of their misery. It appears to be a case of either apply for extended credit or go overdrawn.
“Either way, the bank wins. The customer is potentially left with long term debt racking up interest, or paying often very high unauthorised overdraft charges – paying up to a total of £350 to clear an overdraft of £150 less than three weeks old****.
“Speedeloans is able to fill this gap by providing a cash advance until payday. And with our average customer paying the equivalent of 1% interest a day on a payday loan***, borrowing money this way can often work out more cost-attractive than other methods of borrowing.
“Many of our customers also appreciate the fact that they borrow the money and then pay it back – together with interest and any fees – within a month or so, leaving them with no long term debts over their head. It’s a quick and simple way to get a fast cash injection - speedeloans is 100% online and can pay the customer’s loan into their bank account within an hour.
“With our service - and unlike some other methods of borrowing - you know exactly how much you will pay in total even before you apply.”
Mr. Miller-Cheevers says: “We want to assist genuine customers who just require a short term loan - perhaps to help with Christmas shopping. After all, the best bargains are online and many people won’t get paid in time to order and take delivery of their online Christmas present purchases.”
He adds that speedeloans is very careful not load up already hard up and indebted individuals with more debt and has strengthened its systems to reject applicants who already have high levels of debt or who have taken on multiple payday loans through less scrupulous operators.
Ends
*Moneywise August 2011 citing Experian research
**Based on the current median gross annual earnings being £26,200 as per ONS statistics
***An average speedeloans customer borrows for a sum of £221 for 19 days, paying 1% interest a day – based on data for the period: Feb 2010-July 2011
****To borrow £150 for 20 days from speedeloans would attract charges of £34.39. Going in to unauthorised overdraft for the same period of time and same amount (£150) would attract charges of £100 each from Santander and Halifax and £200 from Lloyds TSB (information correct as at 01.12.11)
CONTACT: Gary Miller-Cheevers, speedeloans.com, CEO, telephone: 0844 879 3199 or 07545 148121, email: gmc@speedeloans.com
Stella Hulott, Speedie PR, telephone: 01843 831088 or 07932 750271, email: stella.hulott@speediepr.co.uk
ABOUT US
speedeloans.com is a practical alternative to banks that can no longer help their customers with their short term financial needs. Privately backed by people who understand our customers, our mission is to provide instant decisions and two hour money whenever they need it.
We are at the cutting edge of modern consumer finance by offering small, short term loans online with real speed and ease. We are flexible and paper free which means you can apply using our easy-to-use website whenever you need cash in a hurry. We have a consumer credit licence from the Office of Fair Trading.
In August 2011 we won an award for “Most Responsible Lender” which we welcome as proof that we are doing the right thing both for our own business, but also more importantly, our customers.
Tags: