| |
Payday Loans
By Sara Chambers
You see them in every strip mall east and west of the Mississippi: Cash Advance, Cash-N-Go, Check Into Cash, Urgent Money Service, and the list continues. What exactly are these businesses that seem to offer you money right when you need them? They are cash advance companies which often make loans commonly called payday loans. In many ways, these companies have become the country's modern day loan sharks. No, they will not cut off your thumbs or pour cement around your feet and make you swim with the fishes. They will, however, torture you with fees, upon fees, upon fees.
So what is a payday loan? A payday loan is a cash advance loan. The loan in itself is held by a personal check. For example, you could write a personal check for $135 in order to borrow $100. The check casher will agree to not cash the check often for fourteen days. This can be extended if needed, but not without a charge. Many people use it to bridge the gap between pay checks. But the Federal Trade Commission calls it "Costly cash," and for good reason.
Using the example above of a $100 loan for a check of $135, you will see when the math is done how truly costly a Payday Loan is. When you are in desperate need, the $35 seems miniscule. But, when you consider that this charge will occur every fourteen days if you do not pay, this equates to 650 percent APR. A bad credit card will offer you 28 percent APR. When you choose this option, you are going to pay much more in charges and interest and could find yourself even deeper in debt.
So what are your alternatives? If you seriously cannot make it until next payday, there are other options you may have instead of taking out a payday loan. Sort your bills. Choose which ones can wait until next pay day and make them wait. If you have creditors, you can negotiate a new or temporary payment plan to see you through.
About the Author
Sara Chambers is a marketing consultant and an internet content manager for http://www.paydayloanweblog.com
Article Source: http://www.simplysearch4it.com/article/20886.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/20886.html" as shown above and make it hyperlinked. |
| Some other articles by Sara Chambers | Corporate gifts
For all those who innocently enquire- why would a profit hungry corporation start distributing corporate gifts to anybody, here is some information that will come as a surprise. Distribution of Corporate gifts has been one of the ...
VoIP
What is VoIP?
VoIP, or Voice-Over-Internet Protocol, is literally a phone call placed via an internet connection. VoIP has been a long time coming and early internet phone calls were not that reliable and a ...
Identity Theft
Identity theft is a growing problem in the United States, occurring in small towns and cities alike. Identity theft, as defined by the federal government, refers to the use of another person's identity or identification ...
Term Life Insurance
Term life insurance is defined as insurance coverage that covers in increments of time, known as terms, such as one year, five years or ten years. The policy holder pays premiums during this time, but ...
Reverse Mortgages
Perhaps you know what a mortgage is. A mortgage exists when a loan is taken out from a bank or another ...
Putting a Stop to Hair Loss
Millions of Americans are affected by thinning hair and hair loss, called alopecia. Typically we think of men with the most common ...
|
|
| |
|
