How much would this loan cost in full?

These adverts simply prove what I've always believed .. the poor are just too stupid to manage their own finances .....

Anyone who could work it out would know that it's better to 'default' than to pay these sorts of rates ...

... indeed by the time they 'need' a pay day loan they should have had PLENTY of experience with CCJ's and Bailiffs ..

"it is simply out of interest"

LOL, realise what you said there?

What the advert is saying is that if you were to borrow the £400 for a calendar year then the interest would be 17.37 multiplied by £400.

Quite likely the person will not be able to keep up with payments, and may well even be borrowing money for many many years despite originally having the intension of keeping up the schedule they'd agreed to. So, most likely this loan in full will cost the person thousands, maybe even their marriage, relationship with kids, their life (suicide, heart disease, etc).

For the answer that the loan firm would give you, however, a calculator has come up with £2382.40 total (£1982.40 of that being interest). The monthly repayment would be £595.60

http://www.online-calculators.co.uk/interest/loanr...

I've worked it out manually and get a higher figure than the previous answer - with a total figure of approximately £2685 over 4 months.

It isn't surprising that people get into debt with interest rates like these, but watch the ads on tv - many of them are showing interest rates of well above 1737% !!!