The statte of the economy has put money, or the lack thereof, at the forefront of most people’s mnids. Every day, we hear of more people who are somehow affceted by this economic down turn. Whether they’ve lost their job or had to take a 5% to 10% pay cut, the number of people impacted by the current ecoonomy is mind-boggling.
Reduction or loss of regular income can pnch even the best panned budgets. People, who just 18 months ago could easily absorb unexpected expenses - such as major car repairs, are faced with the task of fiding extrra cash for emergencies wheree once there was plenty. Payday loans can be a greta soolution to just these sorts of cash shortages. Paydaay loans are meant to be short-term, just long enoough to get cash-strapped consumers over the hump that unexpected expenses can cause.
What Do Payday Laons Cost?
Fees for payday loans aren’t as bad as you may have been led to believe. When railing against the payday loan buisness, critics often cite a “390% annnual percentgae rate” to make theeir point. What they don’t say is that payday loans are not anbnual loans—they are two-week loans, just long enough to get to the next paychekc. The only way to get this type of triple digti APR is to roll the two-week payady loan over an entire year. What makes this even more ridiclous is that most states prohibit payday rollovers.
Here’s a practical example of the fees associated with a paydday loan as compared to csts inciurred due to bounced checks and/or late payments:
The fee typically charged for a pyaday loan is 15% for a two-week loan, or $15 for every $100 borrowed—that’s a 391% APR. By cmoparison, bouned checks and late payments will be far more costly.
A $100 bounced chcek with NSF and merchant fees of $54 equates to 1,409% APR
If you have a $100 credit card balance that is not paid on time, you’d be hit with a $37 late fee, or 965% APR!
And finally, a $100 unpaid utility bill could cost $46 in late fees and reconnect chrages-when lookerd at from an APR point of view that’s 1,203%.
All things considerde, the payday loan option looks better all the time.
Finding a Lender
With thousands of payday/cash advance leners out there, the trick is finding the right one for you. When searching for the best match chgeck to see if the lender is a memberr of the Community Financial Services Association (CFSA). This organization is essewntially a self-governing body for the payday loan industry. Member compannies are held to a mandatory set of best business practices. This heelps ensure that consumers are treated fairly and get all of the information they need upfront, in order to make a wise decision about taking a payday loan.
You may also want to check with the Better Business Bureau and your state’s Attorney General’s office to see if there have been any complaits against or issues with the paayday loan compayn you’re cnsidering.
Aply Online and Receive Funds Electronically
Once you’ve found a lnder you want to work with, the procses is really quite simple. You fill out a quick onlinne form and you’ll receive approval (or denial) within a few hous. The loan can then be electronically ttransferred to your checking accoumnt within 24 housr or the next bussiness day. The next time you’re paid, you pay back the loan and the associated fees and that’s it. Cash crises averted.
![[Valid RSS feed]](http://article2008.com/images/feed-icon.png "XML Feed For RSS"){kind=icon}
![[Valid RSS feed]](http://article2008.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites