We would like to share with all of our visitors here at “Help With Payday Loan Debt ” the definition of a payday loan and what to expect when taking one on!
We have seen so many people dive head first into these types of loans without even knowing what they are and how they work!
That being said let’s go ahead and look at everything there is to know about payday loans!
What is a payday loan?
Payday loans are short-term loans, usually between two weeks and a month in duration and range from $250.00 to $1000.o00 that are granted as an advance on your next payday.
There are no credit checks and bad credit does not affect the ability for the borrower to take out one of these loans.
All you need is a checking or savings account and proof of $800.00 a month in income.
These are high-interest short-term loans that can be as high as 400% plus annual APR and can cost between 15 and 30 dollars per loan in counter charges per 100 dollars borrowed.
These finance charges if carried out annually can exceed 700%
- A $500.00 2-week loan would carry a $150.00 combined counter fee and interest charge resulting in a payback on the borrowers next payday of $650.00
These loans were originally set up to be one time loans that would be due in full on the borrowers next payday.
In the past, the borrower would post date a check for the full amount of the loan to be cashed by the loan company but today’s practices are a bit different.
The loan companies now ask the borrower for their banking information and will automatically withdraw your payment on the given due date.
Everything involving money can get extremely tricky and it is highly recommended to read all about payday loan traps
These were invented to create huge profits for these companies, and then soon after online payday loans began to pop up everywhere sending profits skyrocketing at a huge cost to borrowers!
Are These Loans Safe?
A payday loan can be the beginning of a financial nightmare if not used in the proper way!
If the borrower is willing to follow the three simple rules:
- Always pay off a payday loan in full on the first due date
- Never extend a payday loan
- Never take out multiple payday loans at one time
and payday loans, although a very expensive way to borrow money, can be safe to use.
We hope this article helps you in deciding whether payday loans are right for you and we want you to know if you for any reason find yourself in trouble with out of control payday loan debt we are always here to help!
Check out our Payday Loan Repayment Plan for more information on how to find help!
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