| Offered to borrowers under many names such as | | | | several lenders charge 25 dollars for each |
| paycheck loans, 'til payday loans, and cash | | | | 100 dollars lent to the consumer. If a |
| advance loans, payday loans have grown | | | | consumer were to borrow 300 dollars for two |
| rapidly both on and offline across America. | | | | weeks at that rate, he would be paying 375 |
| They seem to offer a solution for many | | | | dollars back to the lender when the loan |
| credit-challenged borrowers that is hard to | | | | comes due at an annual rate of over 600 |
| resist: The ability to get instant access to | | | | percent. At those prices, even the most |
| cash without a credit check. Typically, the | | | | expensive high interest rate credit card is a |
| only requirement for getting a payday loan is | | | | bargain. The fees charged vary widely from |
| proof of employment and a checking account. | | | | one lender to the next, so shopping around |
| | | | can save borrowers a considerable amount of |
| | | | money. For example, online you can find |
| | | | payday loans for as little as 10 dollars per |
| On the plus side, the payday loan is | | | | 100 dollars borrowed. |
| relatively easy and quick to obtain | | | | |
| regardless of a borrower's credit situation, | | | | |
| as stated above. They are also widely | | | | |
| available both online and off. Repaying a | | | | Are payday loans a viable financing option |
| payday loan is simple. Typically, you either | | | | for borrowers? The answer lies in your |
| give the lender a post-dated check that they | | | | credit rating and your need for the funds. |
| will cash on the date your loan is due, or | | | | If you can use a credit card, get a personal |
| they will take the money out of your account | | | | loan from your bank, or borrow short-term |
| electronically with an e-check. Payday | | | | from a relative or friend, those are likely |
| lenders have streamlined the process to make | | | | much better options that will cost you less |
| it simple and convenient for the consumer. | | | | in fees. If you do not have the ability to |
| | | | obtain funds from any of these sources, |
| | | | payday loans might be the only option |
| | | | available. Because of the high cost, use of |
| On the negative side, payday loans are | | | | payday loans should be limited to emergencies |
| relatively high priced. The fees are | | | | only.Greg Dickerson is an independent |
| typically quoted as costing a certain amount | | | | financial consultant and contributor of |
| per 100 dollars borrowed. For instance, | | | | personal finance articles on the Internet. |