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

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

Exactly What Are Payday Advances?

I’ve attempted in my overly wordy and way that is complex explain payday lending 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 instance, John ultimately ends up having to pay seven $75 fees—$525—to borrow $500 for 12 months. In APR terms, that actually works away to about a 390% annualized rate of interest that John paid on their $500 loan. Big Ouch.

How Come Individuals Simply Just Simply Take Out Pay Day Loans?

That’s simple: they require cash. But that’s an answer that is superficial. The actual real question is how does anybody determine that an online payday loan is the option that is best to have needed money?

Often—just like when you look at the movie with John’s truck breaking down—the need begins with a few kind of mini-crisis. Continue reading “We haven’t slammed payday lending for a long time now, it’s about time so I figured.”