This info graphic looks at the cheapest way to borrow £100 on a short term basis from four different solutions. The case study focuses on Peter, who represents the average short term borrower and looks at all four viable options for borrowing the money. These include a mixture of banking options and third party options including Payday loans, an Authorised bank overdraft, an Unauthorised bank overdraft and a Credit card.
To work out the total cost of each option we summed the following:
• The loan amount £100
• The interest rate for the £100 loan
• The period of time that the money was being borrowed for (1 week)
• Additional fees added to the original loan amount.
The results show very clearly which option is the most expensive and which option is the least expensive, therefore Peter has a very clear idea of which option is the cheapest option available to him for his loan of £100.
Source: Fast Payday loans Review