Need money fast?

It's interesting to see the rise in high interest, short term loan sites.  I blogged about Wonga last year, and now there's Quick Quid.

Here's their advert:

Wow!

2356% APR!

That's TWO THOUSAND, THREE HUNDRED AND FIFTY-SIX PERCENT annual interest!!!!

2356%!!!!!!!!

OK, it sounds bad ... but it's not.

Y'see these sites are designed for folks who are in a tight spot for a week.  Their monthly wages are coming in on Monday and it's Thursday.  The rent's due and they're broke.  What to do?

Borrow the rent for four days off Wonga or Quick Quid.

Problem sorted.

These sites don't encourage long-term borrowing as, if they did, they would be considered loan sharks which they are not trying to be.

As founder of Wonga, Eroll, puts it:

"Responsible lending is at the heart of our mission at Wonga. It means #1 being transparent.  Anyone dealing with credit card companies and banks knows the frustration of dealing with companies that aren't transparent about what things really cost.  We've never had a customer at Wonga who has told us, after they've taken the loan, that they didn't understand how much it was going to cost them, when they were going to be charged.  That has never happened."

Even so, 2356% interest rates. 

Now then, if I could get you to borrow for a few months longer ...