The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans - which come at a very high price.
Check cashers, finance companies and others are making small, short-term, high-rate loans that go by a variety of names: payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans.
Usually, a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow plus a fee. The company gives the borrower the amount of the check minus the fee. Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed - say, for every $50 or $100 loaned. And, if you extend or "roll-over" the loan - say for another two weeks - you will pay the fees for each extension.
Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).
A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit. Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or payday lender agrees to hold the check until your next payday. At that time, depending on the particular plan, the lender deposits the check, you redeem the check by paying the $115 in cash, or you roll-over the check by paying a fee to extend the loan for another two weeks. In this example, the cost of the initial loan is a $15 finance charge and 391 percent APR. If you roll-over the loan three times, the finance charge would climb to $60 to borrow $100.
Payday loan A Complete overview
Why Starve Your Needs When Payday Loans Are There
Payday Loans How To Make Them Work For Youh
Internet Payday Loans Tricks And Tips
Payday Loan Advantages
Payday Loans How To Make Them Work For You
Alternative ways to avoid payday loan
Payday Loans The Legal Loan Sharking Industry
Should you ever take a payday loan
Benefits of a payday loan
Compare Payday Loan Or Cash Advance Lenders Online
Cash Til Payday Loans When Is The Best Time To G
Online PayDay Loans How to Gain an Advantage over
Payday loan companies
PayDay Loan Online How Do Online Payday Loans Wo
Payday loans examine your alternatives
Do Payday Loans Deserve a Bad Rap
Debt Consolidation Watch out for Payday Loans
Quick Cash Advance Payday Loan Get it Free or Ch
What are Payday loans and how they can be very exp
What to check out when you apply for a payday loan
Payday Loan
The Average Profile of Customers Opting for a Payd
User guide to payday loan terminologies
Faxless Payday Loan Faxless Cash Advance Loan T...
Shopping For A Payday Loan
Payday Loan And Cash Advance Lenders Online How
Payday Loan Terminology
Why Payday Loans should be avoided
Cash Advance Payday Loans
Payday Loans Pros and Cons
The Truth About Payday Loans
What is a Payday loan
Short-Term or PayDay Loans
No Fax Payday Loans Online For A Fast Cash Advance
Things All Borrowers MUST Know About Payday Loans
go to Payday Loan index page