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[N315]No Lender Payday Loans

by Wendy Pollman, Wen

The APR

Someone intelligent came up with the APR to protect consumers from devious lenders. You can compare the APR or Annual Percentage Rate to the list of ingredients in a jar of pickles. From that list of ingredients, you know what you are going to get, loads of sodium and water and fresh pickles. With an APR in payday loans, you know how much you are paying for a loan in the course of a year. That includes the interests, charges and other mysterious fees.

But if payday loans are short-term loans, what is an APR doing here? Is someone joking? No; so tighten your seatbelts please. An APR in short term loans reflect the fees on these loans. This is supposed to help you make an informed choice before you take out a fast loan.

If you take out a $200 loan, the fees might be $50 assuming this is the going rate for loan fees. Change the two weeks into a year. There are 52 weeks; divide this by 2; you get 26 two weeks in a year. Now multiply the 50 fee by 26 weeks you get 1,300 yearly charges. To get the APR percentage divide 1,300 by 200 you get an outrageous 650% APR! It's all right; you can take a deep breath now. Got the picture?

Don't Rush

When in die need for cash, people will do everything to get it, not realizing the full extent of the consequences. They will grab payday loans with astronomical interest rates thinking that the extra $25 is nothing compared to the urgency of their need. Don't hurry because of an emergency. Take your sweet time to compare interest rates. In the case of a grand default, you know how much it will cost you to recover from the debt.

Don't be intimidated by any lender. Go ask for the APR. Lenders are required by Federal law to post the rates so there is no reason why your lender should hesitate to let you know of the APR of your loan. If the lender does not provide you the APR, it is time to shop for another lender. With hundreds of lenders out there, you can find one who can satisfy your requirements before satisfying his. Touché!

Knowing the APR can galvanize you to pay payday loans on time. Go ahead and ask for the APR; it is your right as a consumer to know the APR of loans, mortgages, and credit card debts. The APR is your guidepost to reasonable loans and at this time, you cannot mess with your money.

Know the Enemy

According to Sun Tzu, a great Chinese general, it pays to know thy self and to know the enemy and you will never fear the outcome of a thousand battles. In this case, the enemy is ignorance of the APR; you have to know yourself too; can you really afford to pay those payday loans without trouble? Now the big puzzle is no more.

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You never know when urgent expenses crops up and then you go around for a delayed help. If you are a salaried person, payday loans are suitable options for you. However, do not just rush to apply for these loans blindly. There are many instances of the people falling into debt trap due to the unwise manner of taking out these loans.

The main attraction of the loans is that the borrowers get the loan amount within 24 hours in their bank checking account. Such instant availability of the money enables in paying off a medical bill or any other expense.

You should hold a job for last at least six month, with a fixed monthly salary. The loan amount ranges from as little as ?100 to ?1500, depending on your salary. The lenders do not take any security, except a post-dated cheque of the loaned amount and interest payments. On the due date of repayment, the lender will deposit the cheque in your bank for getting the loan back.

However, borrow only smaller amount. This is because payday loans carry many times higher interest rate than the rate on any other loans. The loan carries a typical rate of 30 percent. This clearly results in enormous interest payments on total borrowed amount. Consequently, salaried people are likely to fall into the debt trap, especially when they borrow larger amounts and extend its repayment for a month.

Bad credit history of the applicant is seldom a hurdle in the way of availing these loans. The lenders usually approve it without any credit checks.

You should compare payday loans offer on internet. Because of intense competition in the loan business, you are likely to borrow the money at comparatively lower interest rates. Ensure to repay the loan from the next salary cheque for improving your rating.

Article Source : Pg. 19

About Author

Both Wendy Pollman & Tom Dikkin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Wendy Pollman has sinced written about articles on various topics from Payday Loans, Cash Advance Loan and Parenting. In time of need, can help you. Get from reputabl. Wendy Pollman's top article generates over 3600 views. to your Favourites.

Tom Dikkin has sinced written about articles on various topics from Bad Credit Loans, Unsecured Loans and Payday Loans. Tom Dikkin has done his masters in Finance from Oxford university and is currently assisting Bad Credit Payday Loans as a finance advisor. For more information related to. Tom Dikkin's top article generates over 18100 views. to your Favourites.