Cheap Payday Loans - it Could be a Reality

By: Eunice Scott

Usually, lenders have this tendency of charging interest at very high rate, when you approach them to get a loan for few weeks. So, when we talk of , it does not sound convincing enough. However, there are some tips that can help you in finding a suitable deal that is less burdensome.

Payday loans are known for high financial charges. These charges are so high that when converted into interest rate, the APR goes many hundred times higher than on any other loan. The APR may go up to 500 percent. This is because these loans are approved for two weeks only, and the lenders have no security, other than a post-dated cheque from the borrower.

Often the financial charges go up to ?30 on each ?100 borrowed. These charges are for two weeks, which is the duration of payday loans. You are then supposed to repay the loan from next paycheque. You can borrow ?100 to ?1500, depending on your monthly salary. Clearly, you have to make high amount of interest payment on total borrowed amount. As a result, many salaried borrowers have incurred debts, as they could not make timely repayments.

However, some of the lenders of payday loans have lowered their financial charges to beat the competition. Their charges may go down to ?20 or even to ?10. You can find these offers on making an extensive search on internet.

But note that such low cost loan will come on certain conditions of the lenders. So, while making the comparison of these loans, compare the conditions as well.

You should also be aware of the fact that you will loose the advantage of finding a cheap payday loan, if you fail to repay it from next salary cheque. Even if the loan comes at the low charges of the lenders, the loan will become burdensome, if you extend it for couple of weeks, as the lenders will charge higher fee and penalty as well.

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