วันพฤหัสบดีที่ 20 ตุลาคม พ.ศ. 2559

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Payday loans, sometimes also called paycheck advances or payday advances, are small, short-term loans that allow borrowers to cover expenses until he or she receives the next paycheck.
This type of lending has come under a bit of scrutiny lately, as many unscrupulous individuals began taking advantage of borrowers. Because of this, some jurisdictions have imposed strict usury limits on the annual percentage rates that can be charged. Other jurisdictions have banned the practice of payday lending all together, while still others do not police the industry at all. Since the nature of payday loans is very short-term, there can be a significant difference between the annual percentage rate (APR), and the effective annual rate (EAR). This is due to the fact that EAR compounds the interest, which can cost a great deal more to repay.
Payday loans are typically issued through a retail outlet. The money is issued immediately with no background or credit checks, and is due in full at the time of the borrower's next paycheck (typically a term of no longer than two weeks). The finance charges on these loans are quite high and can be anywhere from fifteen to thirty percent of the amount borrowed for the two week period. This ends up calculating out to be an APR of anywhere from 390 to 780 percent. Terms are set in place by the borrower writing a postdated check to the lender for the full amount of the loan plus the applicable fees. When the loan is due to be repaid, the borrower is to return to the store to repay the loan in person, or else the lender will cash the postdated check.
In the event that the person does not return to the store to pay, and the postdated check bounces, the borrower will face extra fees from their bank, extra fees and interest charges from the lender, on top of the original amount owed.

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