Payday Loans and Check Cashing Alternatives

A Payday Loan is a small, short-term loan at an extremely high interest rate, usually a cash advance loan secured by a personal check. These services may also be known as check advance loans, post-dated check loans or deferred deposit check loans.

The finance company charges a fee to the borrower as a percentage of the checks value. If an individual writes a personal check for $115 to borrow $100 for 14 days, that $15 “fee” is equivalent to 391 % annual interest. Continue reading “Payday Loans and Check Cashing Alternatives” »