The Financial Conduct Authority has capped payday loan costs, so there are limits on the amount of interest and default fees you could be charged. Interest rates vary greatly between lenders, but the caps mean that you will never have to pay back more than twice what you borrowed. Short-term loans are notorious for having high interest rates, and some APRs go as high as 1,500%. If you are taking out a three-month loan, be sure to shop around and do your research to find the best deal.
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