Pay day loans, or payday advances, are usually two-week loans between 100 and 500. a customer supplies a post-dated check and gets money for the check quantity instantly, minus a 15 to 30 % finance cost. When expressed as an APR (annual percentage rate), this price can go beyond 400 %.

Numerous customers can’t manage to spend down these loans inside a fortnight. They either roll on the loan and take down another cash advance to repay the very first one, states Mike Sullivan, individual economic consultant for Take Charge America, a national non-profit credit counseling agency based in Phoenix. Continue reading →