A better glance at the known facts and numbers of payday advances
Payday-style loans (or high-cost, short-term credit) are short-term financing for a small amount of income. These loans can quickly be accessed, also by people that have bad credit or reduced incomes. The tradeoff is the fact that they frequently come at a cost that is high. While 4 in 5 of the loans usually are paid down in a single thirty days or less, it works out to be 1,300% annualised if we look at the typical interest rates charged. Prices vary by payday loan provider, but weighed against almost every other credit choices, it is a costly solution to borrow.
Take a good look at the diagram below which illustrates the various kinds of unsecured loans and where pay day loans fit in:read more