A payday loan is a short-term small-dollar loan that is used to address emergency cash need and is supposed to be paid off by the next payday. Since it is a better alternative than any other monetary solution, a payday cash advance is costlier than those others. In that regard, it is quite understood. However, what are the elements that are associated with a payday loan that make it costly? What is the average cost of a payday loan?
According to the Consumer Financial Protection Bureau, people borrow payday advances from $200 to $1,000. They also depend on the state laws; especially how much can be borrowed. The cost of such loans, usually, depends on the fees and interest that one pays.
There are different lenders that charge differently on the same amount of loan. However, the formula upon they charge remains the same. For example, if you have borrowed $200, and you pay $30 as APR (interest + fees) on the principal, you would pay $230. Here it cost you $30. Apart from that, there could be additional charges if you didn’t pay back on due.
Therefore, the best way to keep the cost of a payday loan low is to pay back on due. That way, you also can calculate in a simple way how much that payday loan would cost.
Smart borrowing is essential when considering a $255 payday loan, a small-dollar, short-term loan designed… Read More
Paperwork burdens people today. Faxless cash advances solve this. Goodbye to traditional lending hassles. A… Read More
Payday loans and cash advances offer the option to borrow against your forthcoming paycheck. This… Read More
One area of financial planning that is disregarded is the need to budget for unforeseen… Read More
Are payday loans for bad credit becoming a financial burden? Are you struggling to stay… Read More
Struggling to pay off your loan while trying to improve your credit score can feel… Read More