Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


What are Payday loans and how they can be very expensive

Written by: Joel Teo

What are Payday loans and how they can be very expensive

By Joel Teo

All Rights Reserved 2005

The media has been telling people about how easy it is to
get a payday loan where you can get an unsecured until your
next payday. What most people do not realize until it is too
late is that a payday loan is actually a very expensive form
of credit. This article would therefore explain how payday
loans work and why they can be very expensive for the
borrower.

Payday Loans are unsecured loans which charge high interest
for short periods of lending. Many people seem to flock to
them to tide over their credit card debts until their next
payday thus the name. Other names for payday loans include
cash advance loans, check advance loans or deferred deposit
check loans.

What usually happens when a borrower signs up for a payday
loan is that they write a personal check to the lender for
the amount plus a fee. The company then gives the borrower
the amount of the check less the fee. This fee is usually a
portion of the loan sum.

Thus we can see that a payday loan secured by a personal
check is a very expensive form of credit. A simple loan of
$100 would cost you $115 for 14 days and depending on your
contract, it may then increase to $160 later if you choose
to roll over the loan. It would therefore be prudent of the
borrower to choose a lender of a payday loan that charges
you the least annual percentage rate (APR) or in other words
the cost of credit provided to you on a yearly basis.

In conclusion, payday loans while popular, represent a very
expensive form of credit. If you should decide on taking up
a payday loan, you should consider spending some time
shopping around and looking for the payday loan finance
company with the lowest APR so as to reduce the amount of
fees you would have to pay come your next payday.


About the Author

Learn about payday loans and debt reduction in our
money making

directory
at
http://www.MakeThousandsToday.info


.



Other Related Articles:

Student Loan Consolidation: The Other ReFi Boom
You've heard about refinancing in the mortgage market. Who hasn't? Interest rates are at all-time lows. Folks have refinanced two and three times in as many years to save thousands of dollars in interest they would have otherwise paid. There's a...read more

Mobile Home Mortgage Loans
A large number of prospective homeowners are interested in acquiring mobile or manufactured homes. Should these homeowners require financial assistance, they will need to take the assistance of approved lenders who make the money available...read more

Using A Calculator To Assess Your Loan
If you are looking to purchase a new home then you will want to use a mortgage qualification calculator to assist you in working out how much of a home loan you will be able to afford. A mortgage calculator is based around a computer program that...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map