Cash Advance Payday Loan – Quick Money to Pay Bills Today
Posted on | November 6, 2009 | 1 Comment
A cash advance payday loan is often thought of as a bad financial decision but sometimes desperate times call for desperate measures. With a bad credit payday loan or cash advance loan you have the ability to get quick money to pay bills today. The problem with this process is that you are going to pay a significant amount of money when compared to the actual size of your loan.
Luckily for borrowers, the amount of fees that payday loan companies can charge is regulated at the state level. This is not true for all states but most of them. The amount that most states have decided is the maximum is between $10 and $15 per $100 borrowed. Each pay period that you do not pay your loan back you will incur that fee once again.
If you borrow $100 and you do not pay the loan back until your third paycheck after you took the loan out you can expect to pay between $30 and $45 in fees. Remember that you are paying this much in fees on a $100 loan; that is over 30% in just a few weeks. This is the reason that payday loan companies are excited about new customers; getting a return of 30% in just a few weeks cannot be duplicated elsewhere.
The one thing that these companies have to worry about is the chance of default. Many cash advance payday loan borrowers have extremely bad credit and they are very likely to default on the loan and never pay any of it. These companies realize this and that is the exact reason you see fees and costs so high. If everyone paid off their payday loans then they could reduce the fees but that will never happen.
You may say that you are going to pay your payday loan off with your first paycheck but the statistics prove that to be false. Over 60% of bad credit cash advance borrowers do not pay their loan back with their first paycheck. This is not surprising as these borrowers have been bad with money in the past and that is likely to continue into the future.
Please check out our new site on Unemployment and what is available to you. Unemployed and Trying allows you to send your stories and also gives you some of the benefits you can receive while on unemployment. If you know anyone who is unemployed please pass the website along to them.
Author: Heather Best
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November 18th, 2009 @ 1:49 am
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