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Payday Loans Information and Savings
Everything You Need to Know About Payday Loans
Are you considering a payday loan? If so, be very careful. Payday Loans, often called advance loans, check advance loans, or deferred deposit loans, come with a very high interest rate and are very expensive. Payday loans should be your last resort if you need to borrow money. But, if you need money to meet a short-term cash crunch, a payday loan might be what you need.
Payday Loans are usually secured by a personal check to the lender for the amount that the borrower wishes to borrow -- plus a fee. The borrower gets the amount of the check less the fee and the fee is based on the amount that is borrowed. If you extend payday loans for a longer period than originally agreed upon, you will pay additional fees for each extension.
Like all Lenders, the institutions that issue payday loans are required by law to disclose the costs involved in the loan. Pay close attention to the finance charge and the annual percentage rate. Make sure that you shop around to get the best deal that suits your own needs, and if the interest rates are very high, you should try to only borrow the minimum amount you need and make every effort to repay it as quickly as possible.
Please use Bills.com whether you are researching payday loans or any kind of financial transaction.
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Payday Loans Stories
Read a personal story about payday loans and gain a better understanding of what's involved.
Payday loans story
Payday Loans FAQs
- What is a payday loan?
A payday loan is a short-term loan that's extended until your next payday. Repayment of the loan is made through an authorized automatic withdrawal set up at the time of the loan.
- When do I have to repay a payday loan?
Most payday loans are due the pay period after you make the loan -- typically no less than 7 days and no more than 18 days. You can normally pay off payday loans early.
- Do I need collateral to get a payday loan?
No. Your job and your paycheck serve as your collateral.
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Glossary of Payday Loans Terms
Amortization: the process of paying off a loan and the accrued interest over time in regular payments. Amortization allows the payment amount to remain the same each month, even though interest continues to accrue. Different portions of the payment are applied toward principal and interest each time, depending on how the interest is calculated.
Collateral: that which you must hand over if you default on a loan. Collateral is used to ensure you make all payments on the loan. If not, you lose whatever it is you put up for collateral.
Simple Interest: the process of portioning monthly payday loan payments between interest and principal. It is calculated based on your unpaid principal balance, the interest rate on your cash advance loan, and the number of days since your last payment.
Term: the period agreed upon in which the borrowed loan amount is to be repaid.
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Average Mortgage Rates
| program | apr |
|---|---|
| 30 Yr Fixed | 4.54% |
| 15 Yr Fixed | 4.05% |
| 30 Yr Fixed Jumbo | 5.7% |
| 15 Yr Fixed Jumbo | 5.22% |
| 3/1 ARM | 3.56% |
| 5/1 ARM | 3.59% |
| 7/1 ARM | 3.82% |
| 10/1 ARM | 4.18% |
| 3/1 ARM (I/O) | 5.25% |
| 5/1 ARM (I/O) | 3.68% |
| 7/1 ARM (I/O) | 4.06% |
Payday Loans Articles and Advice
Repaying A Payday Loan
If you default on your payday loans, the lender can take the same action as any other unsecured creditor to enforce a defaulted debt.
Advice on payday loans and default
How to Repay A Payday Loan
Handling a payday loan is difficult. The biggest challenge is to take charge of the situation and create a solid game-plan, especially since the payday loan cycle is so expensive.
Advice on Pay Day Loan Collections
Payday Loans and Federal Collections Law
Payday lendare subject to Federal and state collections laws, despite their claims to the contrary. Learn your rights under federal law here.
Payday Loan and the FDCPA
Payday Loan Collections in Texas
Collections laws vary by state. Learn what your rights are in Texas (with links to information for other states).
Payday Loans & Hot Checks in Texas
What are the Rights of Payday Loan Collectors?
A collection agent has several legal tools available to collect a debt. Learn what the rights of creditors and debtors are here.
Collections Advice
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