You pay someone to give you money sooner. If you make $100 and you pay $10 to get it sooner your only making $90.
The main benefit is that you can get some quick cash in a pinch.
The major downside is that the interest rates these places charge would make a loan shark blush. Yes the rates are THAT bad. The APR, annual percentage rate, in the state of Nevada for one of these legal loan sharks located here in Las Vegas is 430.18% with a checking account and 573.57% without a checking account!
Payday loans are a financial trap no one should ever get caught up in. If for some reason you can't pay off the loan on time you will be stuck making interest payments which add up rather fast. A person should never ever use these services except as a last resort in an emergency.
These are loans that are used daily by some, but really should be a last resort after having asked friends or family for help. The do have their place, but should not be looked upon as an ATM, but rather a "Break Glass In Case Of Emergency", type of issue.
by Rose Norton 4 years ago
How do i get a loan when i have payday loans
by gmrwebteam 6 years ago
Today's era payday loans are the most famous and used form of financial service.People like to have payday loans from some cash advance store rather than going to bank.Can anyone tell me why is it happening?Regards
by Anjili 4 years ago
Where do you get the most cost-effective loans from?
by L M Reid 7 years ago
HelloI have just published a hub about Payday loans. There are 2 warnings that came up above my heading instantly.Warning This hub is about Payday LoansWarning This hub is about Debt Consolidation I am presuming from this that these subjects are not allowed on hubPages? But I have...
by dumindu89 6 years ago
What are the advantages and disadvantages of payday loans?
by Alex Frias 7 years ago
The APR can probably be the most confusing number tagged to a loan. The APR or the Annual Percentage Rate, is actually a simplified effort to show you that the finance related charges are rolled into the loan. The APR shows you the percentage of the loan that makes up your finance charges. So if...
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