With the changes in the world and improvement together with the changes in the necessities of the people. The needs of the people today increase together with the enhancement of technology. Thus, people have various solutions to different problems. One of this is the payday loan is a small short-term unsecured loan. Loans also refer to a cash advance a people can have. This term provides cash with the prearranged line of credit such as a credit card. A payday loan is a kind of loan with a high-interest rate compared to others loan.
Facts about Pay Day Loans
- The average payday loans borrower takes only 8 loans per year. More than twelve million of the population of the people takes the chance to get a payday loan every year. It has an average of 8 loans yearly. The payday loans offer a lot of opportunities and solve different problems of the borrower. Thus, this kind of loan has a higher interest rate than other kinds of loans.
- For every 3 out of 5 people who avail payday loans, borrowers tend to pay more fee expenses than the total amount loan. Taking this kind of loan is joining a cycle which leads to own more interest than usual. Payday loans help a different kind of variable living expenses between paychecks.
- The annual percentage rate or also known as the APR for payday loans averages 400% or higher. This fact is supported by the report of CFA or the Consumer Federation of America. According to them loans usually takes 400% APR, which means that payday loans lasted for two weeks thus the interest is almost 390% APR.
Payday loans as a Solution. One of the best things is knowing that there is somewhat people can rely on when experiencing a lack of money. These payday loans open greater opportunity, it is offered to make life easier. It can help people to buy things, to suffice the demands and most especially to fill the needs of the people.
The payday loan supports to pay for unexpected expenses or late bills before an individual can get before their salary. It saves an individual from penalties required on late payments. A payday loan is due with the next paycheck, which means that a person will only be in debt for a few weeks. Payday loans have various benefits over other types of credits.