The payday loan store industry is a $50 billion per year industry, and there are more than 10,000 payday loan stores in the United States. A payday loan has become very popular with thousands of people that need quick cash that is hassle free. There are some things you should consider with payday loan stores and how these type of loans work. Payday loans are short term, unsecured consumer loans that are supposed to be paid back on payday. This is a good alternative to bouncing checks and is case of a financial emergency, but some people run to payday loan stores for the wrong reasons.
Payday loan stores can have APR’s (annual percentage rate) that are as high as 500 percent. This can be a real problem for someone who borrows money from a future payroll check, if they can’t pay the loan back in the intended period of time. If the borrower cannot repay the loan within two weeks, you can be charged a fee to extend the loan. Some payday loan stores will sometimes encourage borrowers to pay off interest before you extent the payday loan. If you don’t pay off the interest, in some cases, the payday loan store will add a second fee that can be charged against the total of the loan and the first fee.
This is where payday loan stores make big money from people who can’t pay back the payday loan on time. Payday loan stores are very convenient , but should be really for financial emergencies. If you can’t pay back the payday loan, you can be turned over to collection and taken to court.
Payday loan stores have really grown over the past decade. With the ease of hassle free payday loans that these payday loan stores offer, some people can end up in a worse financial emergency because of a payday loan. This is why education and research is so important before you apply for any type of loan. It is a good idea to read all the fine print in the loan contract from the payday loan stores before you sign anything.
With easy online access and web sites, you can find all the information you need, before you get a payday loan from the thousands of payday loan stores available. You will know you have made the right financial decision for your situation when shopping for a payday loan from the competitive payday loan stores across the country.