Payday loans are a short term solution. you borrow a small amount of money and pay it back in a short space of time, usually 30 days or less.
It sounds like a good idea but they have gotten a bad rep in the last few years because of the seemingly massive APR values.
Is the interest rate really as high as it seems?
Well, the representative APR is as high as indicated. If this was a standard loan or a credit card then the APR value would seem ridiculous but what you need to understand is that the representative APR that the pay day loans companies are showing is the amount you would pay back if you paid the same product back over a period of a year.
That might sound a little confusing at first but it is based on the fact that APR is only relevant if you are paying back the loan over a period of one year. The payday loan providers will not let you pay it back over a year so you will never ever pay the extremely high APR value. A typical interest rate for a payday loan is around 1% per day.
After saying all that and ranting on about the APR not being ridiculous, there are still some shady pay day loan companies.
If you are considering getting a payday loan you should visit paydayspies.com and check that you are getting the right loan. They search hundreds of payday loan suppliers for you and find the best one for you.
Click here to go to find the right short term loan for you now.
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