Archive for the ‘Payday Loan Apps’ Category

We haven’t slammed payday lending for a long time now, therefore I figured it is about time.

Tuesday, February 25th, 2020

We haven’t slammed payday lending for a long time now, therefore I figured it is about time.

What Exactly Are Pay Day Loans?

I’ve attempted in my overly wordy and way that is complex explain payday financing in past articles (see for example Reverse Bank Robbery, Banking institutions Now Payday Lenders, and Wonga: So Wronga), but this 76-second movie may be the easiest, clearest description of payday lending’s ugliness that I’ve seen.

Into the video’s example, John ultimately ends up having to pay seven $75 fees—$525—to borrow $500 for 12 days. In APR terms, that actually works off to about a 390% annualized rate of interest that John paid on their $500 loan. Big Ouch.

Why Do Individuals Just Just Take Out Pay Day Loans?

That’s simple: they want cash. But that’s an answer that is superficial. The actual real question is how does anybody decide that an online payday loan is their option that is best to have required money?

Often—just like into the movie with John’s truck breaking down—the need begins with a few type of mini-crisis. Therefore the cohort of consumers payday loan providers target are the ones with few choices: No credit, small cost savings, residing hand-to-mouth. (more…)