Research found that the operating costs of payday lending lie in the range of collected advance fees. After minus off the fixed operating costs and the unusually high rate of default losses Payday Loans don't result in extraordinary profits. Higher default rates for payday loan portfolios and these loan losses can average 15% or more of loan revenue. Underwriters of payday loans must also deal with people presenting fraudulent checks as security or making stop payments.
Payday loans (also called Cash Advance Loans, Paycheck Loans, Check Loans, and Payroll Advance Loans) refer to short-term loans, typically with 1-2 weeks of term period. Payday loans are repaid after the borrower gets his/her paycheck for the particular month. If you fail to repay the loan on schedule, you can rollover the loan amount by paying extra fees to the lender; in this case the interest component payable by you will include the rollover period. Hence, payday loan can be termed as 'Loan Sharking. If you are taking a payday loan for the first time, referring to this check-list can help you strike a great deal:
Why Take Payday Loans: Payday loans are emergency cash solutions, especially designed to meet last-minute cash crunch. You can use payday loans to avoid bouncing of checks, bank overdrafts, or to pay pending bills.
The plus points are: o If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest. o In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished. o The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
In comparison, when annualized as APRs under a two-week term: * $100 payday loan with $15 fee= $391% APR; * $100 bounced check with $48 NSF/merchant fees = 1,251% APR; * $100 credit card balance with $26 late fee = 678% APR; * $100 utility bill with $50 late/reconnect fees = 1,304% APR.
A payday loan is actually a cash advance against you next month's earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation.
However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Payday loans (also called Cash Advance Loans, Paycheck Loans, Check Loans, and Payroll Advance Loans) refer to short-term loans, typically with 1-2 weeks of term period. Payday loans are repaid after the borrower gets his/her paycheck for the particular month. If you fail to repay the loan on schedule, you can rollover the loan amount by paying extra fees to the lender; in this case the interest component payable by you will include the rollover period. Hence, payday loan can be termed as 'Loan Sharking. If you are taking a payday loan for the first time, referring to this check-list can help you strike a great deal:
Why Take Payday Loans: Payday loans are emergency cash solutions, especially designed to meet last-minute cash crunch. You can use payday loans to avoid bouncing of checks, bank overdrafts, or to pay pending bills.
The plus points are: o If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest. o In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished. o The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
In comparison, when annualized as APRs under a two-week term: * $100 payday loan with $15 fee= $391% APR; * $100 bounced check with $48 NSF/merchant fees = 1,251% APR; * $100 credit card balance with $26 late fee = 678% APR; * $100 utility bill with $50 late/reconnect fees = 1,304% APR.
A payday loan is actually a cash advance against you next month's earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation.
However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
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