Walking On Eggshells

Payday loans -- saviors or sharks?

0 Comments | Idaho State Journal; Pocatello, Idaho, Jul 27, 2010

$15 (fees generally run from $15 to $30 for a 1- or 2- week loan), which will be paid back at the end of the two weeks. The lender ensures the loan will be paid off by requiring you to write a check for $115, which the lender will automatically cash at the end of the two weeks. If you are still unable to afford repayment of the loan at the end of the two weeks, the lender will give you the option of renewing the loan for another two weeks for another $15 or $30 fee. The initial cost of $15 on a $100 loan already puts the cost of the loan at a 400 percent interest rate, if you annualized the interest. If you find that you need to keep renewing the loan, adding additional $15 or $30 payments, the cost of the loan can add up quickly. Payday loans can be very expensive compared with other types of loans.

Those who find themselves in a position of needing quick cash may be attracted to the payday loan option because of its convenience. To be approved for a payday loan, you don't have to go through credit check, there If unexpected you have ever expense had an you could not afford, like a medical bill or car repair bill, you might understand why payday loans can seem like an attractive option -- especially if you do not have a credit card or other ways of borrowing inexpensively. A payday loan is a small, short-term loan that typically charges high interest

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