Cash when you need it. That’s what various check cashing companies, finance companies and others advertise to lure people in for quick cash in the form of payday loans (also known as cash advance loans, check advance loans, postdated check loans or deferred deposit check loans). Unfortunately, this type of small, short-term, high-interest rate loan is as expensive as it is convenient. According to the Community Action Project of Tulsa County, a group opposed to payday lending, payday loan fees, if annualized, would sometimes equal more than 450 percent.
Usually a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow, plus a fee. The company gives the borrower the amount of the check minus the fee. Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed. You will also pay the fees for each extension.
There are other options to these expensive loans. Contact us and ask how we might be able to help you meet your financial obligations in a less costly way.