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