Fancy learning how to save up to 30% on your instant pay day loan? This is something that lenders do NOT want you to know, for obvious reasons. So listen up, the next 90 seconds can save you a lot of money!
Ok, first – the basics. When you borrow money from a payday lender, you pay up to 0.8% daily interest. It’s kind of like renting a car; you pay a fee for every day you have it. So for example, let’s say you borrow £500 for 50 days. You’re basically renting the money, paying a fee of £4 a day.
With us so far? Great, here comes the big secret.
Borrowing money is not quite like renting a car. When you’re renting money, you should only be paying the daily interest on the money you currently have out. So, in our example, on day one you pay interest on the full £500. But what happens if you win a bet, earn some spare cash, or get a gift from dear old granny? Let’s say you suddenly have £150. You can pay that towards your loan, so now you’re only borrowing £350. For the next 49 days, you only pay interest on £350, not the original 500. In total, you won’t be paying £200 interest, but 140. That’s awesome- you’re saving 30%!
But watch out! Some lenders won’t allow this. You see, they’ll lose a lot of money if everyone starts repaying early!
So, when applying for a loan online, always remember to check that you can repay any amount as soon as you want and save on interest, without any penalties or charges. Cashfloat premium UK loans online offer you the option to repay however much you want whenever you want to help you save money!
Remember: This trick only works if you have disposable income left after leaving money aside for your monthly expenses and for saving. Do not try and save money on one loan by repaying it early with another loan.