Payday Loans vs. Traditional Loans
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Getting Cash Loans and other Personal Loans topics.
Payday Loans vs. Traditional Loans
Payday loans are different from other loans in two main ways: • First, the loans are very short-term loans, so short, in fact, that most financial institutions don't offer similar products. • Second, the fees—or interest—you pay on a payday loan is extremely high. A recent report revealed that payday lenders charge anywhere from 416% to 988% interest for a $100, 14-day loan and that the national average annual percentage rate (APR) charged is 474%. Surprisingly, despite this, the payday loan industry is growing by leaps and bounds across the country. The Community Financial Services Association of America, a trade group for payday lenders, estimates that as many as 25,000 new payday lender shops will open up in the U.S. over the next six to eight years.
| Guru Spotlight |
| Mary White |
