Payday loans
, cash advances and short-term loans are different names for the same beast. No matter what a company calls them, they are short-term loans with extremely high interest rates. In theory, payday loans seem positive. If you do not have enough money to pay pressing bills before your next paycheck, you can receive a cash advance that you pay back on your next payday along with fees and interest.
, cash advances and short-term loans are different names for the same beast. No matter what a company calls them, they are short-term loans with extremely high interest rates. In theory, payday loans seem positive. If you do not have enough money to pay pressing bills before your next paycheck, you can receive a cash advance that you pay back on your next payday along with fees and interest.
Interest rates on average range from 300% up to 800%, and you may even see rates over 1000%. APRs represent the interest paid on a full-year loan, but the term of most payday loans is only two to four weeks. Lenders use this logic to justify excessive APRs, because if you pay back your loan within the typical 14-day period, you will not pay those exorbitant rates. However, an alarming number of borrowers find they cannot pay off their loan within such a short term and therefore resort to rollovers, extensions or renewals, which is when interest and additional fees start to build to unmanageable levels.
on average range from 300% up to 800%, and you may even see rates over 1000%. APRs represent the interest paid on a full-year loan, but the term of most payday loans is only two to four weeks. Lenders use this logic to justify excessive APRs, because if you pay back your loan within the typical 14-day period, you will not pay those exorbitant rates. However, an alarming number of borrowers find they cannot pay off their loan within such a short term and therefore resort to rollovers, extensions or renewals, which is when interest and additional fees start to build to unmanageable levels.
Unfortunately, some people run into situations where they feel they have no other choice; banks deny their request and they have no friends or family to whom they can turn. If you feel you have no other choice than to take out a payday loan, we urge you to do your research and shop around to find a reputable company that offers the lowest APR and fees. Keep in mind that these high-interest loans are not for planned expenses or frivolous spending.
Many lending companies have received fines or been at the center of lawsuits for illegal lending or harassment. We remove those services from our lineup when underhanded or illegal practices come into light. Our top three services –100DayLoans, NetLoanUSA and 24/7Loan – are some of the better options if you decide you want a payday loan. For more information on short-term loans and financial advice to help you avoid them, have a look at our articles on Payday Loans.
and financial advice to help you avoid them, have a look at our articles on Payday Loans.
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