Interest Rates on Payday Loans
Payday loans offer borrowers a small amount of cash upfront to be repaid when your next paycheck comes in. Payday loans are short term loans that can rack up a huge burden on the borrower. Often times the quick fix loan doesn’t get paid by the due date.
Here’s what you need to know about payday loans.
I want to talk to you about a scenario we see often.
A client comes in because their car broke down. They didn’t have enough money in their checking account and they had reached their limit on their credit card. This person went to a Payday loan company. Keep in mind that payday loans come with a fee. This fee could be seventy five dollars for the loan. So if you borrow four hundred dollars you will owe the four hundred dollars plus seventy five dollars for the interest or fee. The borrower told the payday loan company that they couldn’t pay the amount due until a certain date. The payday loan company said that was fine and agreed to hold the check until the borrowers payday to cash it. The only problem is the borrower didn’t have the money by the time it was due. The payday loan company extended the loan and charged another fee of seventy five dollars. This happened time and time again. Now the Four Hundred Dollar loan is now Twelve Hundred Dollars due interest to extend the due date from the original Four Hundred Dollars.
You may only need an attorney once in your life, but if you do, we are here, right here to fight for you. Call Castle Law now at 816-842-6200 to schedule a free consultation. Or visit us online to chat with an attorney. You’ll be glad you did.