Short Term Payday Loan Center

Provide all significant information, resources and BEST OFFER about short term - instant cash - easy & quick approval loan till your payday. If you need short term cash advance to cover your expenses or other emergency need, please check this out for more information.

Tuesday, September 12, 2006

About Payday Loan
"Need cash till payday? Get UP TO $500 instantly!"

No doubt you have seen newspaper ads touting fast cash to tide you over until you get paid. But if you think getting a loan against your paycheck is a good idea, think again.

Loan is a business that didn't even exist 15 years ago. But today, there are more than 10 payday-loan outlets opened. For many customers, these short-term, unsecured consumer loans that are repaid on payday, serve as a successful solution to cash emergencies, and an alternative to bouncing checks or borrowing money from family or friends.

But think again, In 2002, consumers paid $4.3 billion in fees to borrow about $25 billion from payday lenders. Such lenders typically charge service fees of 15% to 30% of the principal, says a report by Consumer Federation of America (CFA), an advocacy group in Washington, D.C. The group found that these schemes prey on cash-strapped folks who get trapped in a cycle of dependency on the loans.
In a typical payday loan transaction, a borrower writes a postdated check to the lender for the amount of the loan plus a fee usually $15-$30 for each $100 borrowed. The lender agrees not to cash the check for a short period, often two weeks, or in theory, the borrower's next payday.

The trouble is that some payday borrowers take out more than one loan at a time and have difficulty paying them back. Others, unable to pay a loan back on time, hand over another fee to extend it. Fees for rollovers quickly can amount to annual percentage rates in triple digits.


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