Avoid The Payday Loan Trap With Our Payday Loan Rescue
Payday and cash advance loans charge extremely high interest rates, outrageous fees and often trap borrowers in a seemingly never-ending cycle that digs them deeper into debt.
What Is A Payday Loan?
- While there is no set definition, a payday loan is a small, short-term, high-interest-rate loan that is typically due on the borrower's next payday.
- They are advertised as a one-time "quick fix" for those who are between paychecks but need money now.
- Payday loans often target people with poor or no credit history, who may not be aware of other options available to them.
- Financial experts say to avoid payday loans, especially if you might not be able to pay them back right away.
How Much Can Payday Loans Cost?
- The average payday loan ranges from $100 to $1,000 with finance charges ranging from $15 to $30 per $100 borrowed.1
- For two-week loans, these finance charges result in interest rates from 390%-780% APR.*2
- If that’s not enough to make your head spin, 12 million Americans take out payday loans each year, and those who borrow pay an average of $520 in fees on an average loan of $375.2
Payday loans can be very appealing to those in a desperate situation, but they’re rarely the solution to anyone’s financial woes. There’s always an alternative to payday loans.
Whether you need to borrow as little as $250 or more, Beach Municipal FCU can help you when you need it most. And since the loan is reported to the credit bureaus, your on-time payments can improve your credit score!
*APR = Annual Percentage Rate.