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subject: Payday Loan Interest Rates Information [print this page]

Payday Loan Interest Rates Information
Payday Loan Interest Rates Information

There are many people who avail of a faxless payday loan

without comprehending how the interest rates work. The

nature of this business is that most people who use payday

loans need to do so in some emergency situation. In general

the main consideration is the fact that an emergency payday

loan application will be accepted and cash will arrive in

time to sort out the emergency.

This in turn leads to an industry that has a very mixed

press. In the UK the industry is younger than in America;

there is however plenty of companies to choose from for

those who may need to avail of these types of loans. For

the moment it is a growing and competitive industry and for

many of its customers a real necessity and service, when

they have no other financial option to turn to in stressful

times.

So let's examine the interest rates, which can be up to

2700%. At a first glance this sounds like daylight robbery,

but as the name of payday loan suggests they are purely an

advance on the pay a lender is due to receive at the end of

the month.

For various reasons there are a growing number

of people who cannot reach the end of the month financially

and therefore they need this service. I remember a time

that there were bosses who would help out their staff by

advancing them some of their wages in a time of need.

If we put this apparently massive APR to one side and look

at the industry slightly differently it may help people

understand it from another perspective. Essentially many of

these service providers lay out clearly on their websites the

fact that they charge a one-off fee.

However the one off charge only applies if the loan is paid

back in the 30 day term, and in reality not everyone taking

out these types of loans manages to do this. Yet for those

who can keep within the term it can be a fair deal, not

cheap but at least fair.

For example if someone needs to

get their car fixed urgently so that they can still go to

work, well then for sure the one off fee is well worth it.

I can describe many situations where it makes financial

sense, as well as keeping stress levels to a minimum sense.

In conclusion they are not interest rates in the same way as

those we have traditionally dealt with, as these loans last

for a few weeks and not a year, and on top of this a flat

fee is something a person chooses to accept or not. It is

not an inexpensive way of laying your hands on emergency

cash however if you keep it to emergencies only plus pay

back the cash in the 30 day term then a faxless payday loan

can be effective in certain situations....Pay Day Loans

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