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Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front).
Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed for every $50 or $100 loaned.
A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit.
Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or a payday loan lender agrees to hold the check until your next payday.
And, if you extend or roll-over the loan - say for another two to four weeks - you will pay A Fee Each Time you get a extension.
Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed.
Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis) which when you do the math can be very high.
Top 10 Alternatives to Payday Loans!
1. There are other options. Consider these possibilities before choosing a payday loan:
2. When you need credit, shop carefully. Compare offers. Look for the credit offer with the lowest APR - consider a small loan from your credit union or small loan company, an advance on pay from your employer, or a loan from family or friends.
3. A cash advance on a credit card also may be a possibility, but it may have a higher interest rate than your other sources of funds: find out the terms before you decide. Also, a local community- based organization may make small business loans to individuals.
4. Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost.
5. Ask your creditors for more time to pay your bills. Find out what they will charge for that service - as a late charge, an additional finance charge or a higher interest rate.
6. Make a realistic budget, and figure your monthly and daily expenditures. Avoid unnecessary purchases - even small daily items. Their costs add up.
7. Also, build some savings - even small deposits can help - to avoid borrowing for emergencies, unexpected expenses or other items. For example, by putting the amount of the fee that would be paid on a typical $300 payday loan in a savings account for six months, you would have extra dollars available. This can give you a buffer against financial emergencies.
8. Find out if you have, or can get, overdraft protection on your checking account. If you are regularly using most or all of the funds in your account and if you make a mistake in your checking (or savings) account ledger or records, overdraft protection can help protect you from further credit problems. Find out the terms of overdraft protection.
9. If you need help working out a debt repayment plan with creditors or developing a budget. There are non-profit groups in every state that offer credit guidance to consumers. These services are available at little or no cost. Also,
10. Check with your employer, credit union or housing authority for no or low-cost credit counseling programs.
If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday.
For More Infomation On PayDay Loans Visit: http://www.debt-elimination-program-reviews.com
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Payday Loans: Learn The Facts First
Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front).
Fast Cash Advance Loans
If you need cash now there are several options available to you. The first is your debit card, assuming you are in good standing at your bank. Just head to the ATM and faster than you can say "I need cash now", you'll be good to go.
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If you are considering getting a payday loan for the first time or are looking for information regarding payday loans, then this article will be of great help to you. Payday loans are designed to provide you with some quick cash until your next paycheck.
Payday Loans - Ways to Keep Your Costs Low
Payday loans offer a fast and easy solution to financial emergencies. But, costs can add up if you don’t pay the loan off or borrow excessive amounts. To use payday loans wisely, follow these tips.
Bad Credit Payday or Cash Advance Loans
If you are in need of extra cash until pay day, you may want to consider applying for a pay day or check loan online. A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify you from qualifying for a pay day loan.
No Fax Payday Loans Online
For a fast cash advance loan, no fax payday loans are now available online. By completing your application online, you don’t have to fax paycheck stubs or forms. Your application can be approved within minutes, and you can have your cash advance available in your checking account the next day.
What is a Cash Advance Loan?
cash advance loan is a short-term loan secured by your paycheck. It is also known as a "Payday Loan". A cash advance loan is a quick and confidential way to get a cash advance until your next payday.
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