Great Britain is a developed nation. However, even in the midst of surplus income, the status of some people is very pathetic. There are also lots of low income communities. It is very hard for them to get a conventional credit card. Therefore, purchasing household items will be very difficult for such individuals. Pay-as-you-view is coming with a breather for the low income individuals. This is relatively a new concept. It allows consumers to purchase household products like fridge, washing machines, TVs, etc. These products are coming with a coin meter. So, the consumers can buy these products by using these coin meters.

In pay-as-you-view loan, the loan company will install a meter on the TV or the household item you have purchased. This meter determines the longevity of TV stays on. This type of loan is very popular in some of the poorest parts of the UK and it is a big business for most companies. Usually, consumers repay their debt by putting coins into a meter. This meter regulates the viewing time. Therefore, the consumers need to deposit coins for stopping it being switched off.

These types of loans are highly expensive. If a customer selects this type of loan, he needs to pay around 500 pounds for purchasing a TV or washing machine that cost only 200 pounds. If you fail to repay the amount, you may get cut off half way. The loan companies are using X Factor for making this cut off. This is really a bizarre way of repayment of loans. However, the poorest community in Britain selects this method for purchasing products.

The average APRs of these meter based loans is around 40%. These types of loans target only the low income people, who have restricted or no access to cheap mainstream credit. It is estimated that these types of money lenders have around 100,000 customers across the country. These companies are targeting customers through word of mouth advertising. Therefore, they are not using the mainstream media or TV for advertising their loan options. Even though, the customer base of these financial companies is very high and it is a booming business for them.

However, counseling professionals warn consumers against these types of loans. The decisions on Pay as You View should be taken very carefully. Before signing any such credit agreement, people should evaluate the amount they have and the amount they really need for purchasing products. These types of loans are very tempting to the consumers. However, they will land in huge debt very quickly.

Some of the customers of Pay as you View are very young. They are not concerned about the disadvantages of these types of loans. They observe only the positive side. Therefore, they are more vulnerable to these types of loans. Their salary will be very less and they may not get support from their family as well. So, they will land in huge debt very fast.

The business models of such loan companies are entirely legal. Even the anti-poverty campaigners consider that these types of loans are highly beneficial for people. Pay as you View lenders are also providing some alternatives like loan sharks. Whatever may be the temptation from these Loan companies, you must take a decision after evaluating the pros and cons very carefully.