Recent press reports in the UK have accused short-term loan lenders to be “legal loan sharks”. The payday loan companies are well-known of those derogatory comments inside the press. The press prefer to be certain about the high APR, that is usually inside thousands. But can there be any truth to the telltale comments? Actually no, there's not. One payday advance company retaliated by proclaiming that these testamonials are completely misleading. They added that it will not make any sense to share with you APR's while confronting direct lender payday loans bad credit loans as these loans are short-term loans, and APR is an annualized measure of interest. She asserted “quoting the APR for a short-term loan is pointless mainly because it offers no comparison between a loan that's on account of be paid fully after a month, as well as a loan which is paid off over the course of a year”. A report by Consumer Focus found out that 1.2 million Britons are borrowing GBP 1.2 billion on this type of home loan every year. This is the case inside the US also where individuals are still suffering with the effects with the recession. Although the payday advance companies do charge high interest rates, everyone is still borrowing at their store since these loans are seen being a fast and simple method of accessing short-term credit. The consequences of payday loans may be negative though when borrowers are influenced to carry over their existing loans, or get further loans to hide payments. For this reason, borrowers really should borrow responsibly and wisely, and just borrow amounts that they may repay using their next pay check.