Pay Day Loan
Alternative Credit Planning
Type of Alternative Credit : Pay Day Loan
This type of credit is a small amount of money spent at a high rate of interest, on the agreement that it will be repaid when the borrower receives their next pay check.
Interest Rates and Fees
Step 1) Formulate Interest
Step 2) Determine amount of fees that are included in the loan
Step 3) Add those fees to the total loan
Step 4) Take total cost with fees divided by amount borrows divided by the number of days it will take to repay the loan and multiply by 365 days.
Average APR: 15%
Sources of this Credit
Most Pay Day lenders do not verify income or run credit checks.
Providers
Advance America (Sheboygan)
Cash 'n Go (Sheboygan)
Cash Store (Plymouth)
All provide this credit.
Need Help?
Consumers might need this help when overcoming an unforeseen financial emergency.
Advantages and Disadvantages
1) It's easy to apply and minimal qualifications
2) Fast!
1) Potential for fraudulence
2) Loans don't last a life time, you receive the money you need, and have only a short period of time to pay them back.
Before You Decide!
Payment plans with creditors, advances from employers and consumer credit counseling are all things to remember and be aware of before using a Pay Day Loan.