Payday loans are the modern day loan shark. Everywhere you look there is some form of advertisement for a payday loan company. Take a drive down the main streets of where you live. Chances are you will see one or two payday loan companies. Take a ride on the information superhighway and you won't have to look far before you see company after company begging you for their business. Open your email and you will find your mailbox full of offers from companies such as Quik Payday. What are payday loans? According to an article found on www.bankrate.com, payday loans are loans issued against a paycheck. These are short-term, small loans that typically range from $100 to $500. People who use these companies are usually in a desperate situation in which there is not other means of obtaining money. They prey on those vulnerable such as those with bad credit. They may have had unexpected car trouble or there may have been sickness in their family. There are many reasons why people turn to payday loans. Payday loans can be easily obtained. You don't even have to drive to a payday loan store near you. You can simply log onto the Internet and do a Googlesearch for payday loans. Payday loans are also referred to as cash advances. You only need to provide proof of employment and sign a few documents and then you are all set. If you apply for them over the Internet, you will have to fax in the requested documents. If you have applied for one over the Internet, the money will be put into your account within 24-48 hours. These companies take advantage of people by charging them with very high interest rates. Payday loan companies simply loan you money until your next paycheck. Because these loans are short term loans the interest on them usually ranges from 300-1000%. Far more than what you pay on your credit card. If you don't pay the amount that you owe on your next paycheck, you are charged a refinance fee and the loan will continue until your next payday. Most of the companies that I have come into contact with allow you to refinance a loan five times. It is not in your best interest for you to continue to refinance the loan. As you fork out the refinance fee each payday, the original loan amount is still there. For every $100 you borrow there is a $30 refinance fee. Let's say that you borrow $200. The total amount due on your next payday would be $260. If you keep on extending the loan for up to the maximum of five paydays, you will have paid $300 in just finance charges. So if on the sixth payday you pay the loan back, you would have paid a total of $560 for a $200 loan.

1. Payday Loans Prey on the Vulnerable With High
Rates
Payday loans are the modern day loan shark. Everywhere you look there is some form of advertisement for
a payday loan company. Take a drive down the main streets of where you live. Chances are you will see one
or two payday loan companies. Take a ride on the information superhighway and you won't have to look far
before you see company after company begging you for their business. Open your email and you will find
your mailbox full of offers from companies such as Quik Payday.
What are payday loans? According to an article found on www.bankrate.com, payday loans are loans issued
against a paycheck. These are short-term, small loans that typically range from $100 to $500. People who
use these companies are usually in a desperate situation in which there is not other means of obtaining
money. They prey on those vulnerable such as those with bad credit. They may have had unexpected car
trouble or there may have been sickness in their family. There are many reasons why people turn to payday
loans. Payday loans can be easily obtained. You don't even have to drive to a payday loan store near you.
You can simply log onto the Internet and do a Googlesearch for payday loans. Payday loans are also
referred to as cash advances.
You only need to provide proof of employment and sign a few documents and then you are all set. If you
apply for them over the Internet, you will have to fax in the requested documents. If you have applied for
one over the Internet, the money will be put into your account within 24-48 hours.
These companies take advantage of people by charging them with very high interest rates. Payday loan
companies simply loan you money until your next paycheck. Because these loans are short term loans the
interest on them usually ranges from 300-1000%. Far more than what you pay on your credit card.
If you don't pay the amount that you owe on your next paycheck, you are charged a refinance fee and the
loan will continue until your next payday. Most of the companies that I have come into contact with allow
you to refinance a loan five times. It is not in your best interest for you to continue to refinance the loan. As
you fork out the refinance fee each payday, the original loan amount is still there. For every $100 you
borrow there is a $30 refinance fee.
Let's say that you borrow $200. The total amount due on your next payday would be $260. If you keep on
extending the loan for up to the maximum of five paydays, you will have paid $300 in just finance charges.
So if on the sixth payday you pay the loan back, you would have paid a total of $560 for a $200 loan.