Payday loans commercial? Cute characters promise financial prosperity. Happy, professional individuals appear to regularly visit their corner payday loan shop as proudly as cashing a check at the bank. Customers at the grocery store all recommend a payday loan as the easy solution for a lack of funds.

Could a payday loan be the answer consumers with low bank accounts have been looking for? Is there any harm in using the services of a payday loan centre? Isn't it better to take a payday loan than using credit cards or going hungry?

WHY USE A PAYDAY LOAN?

Some people think that paying a bill with borrowed money is better than receiving bad credit marks because of not paying the bill.
Talk to your financial instituion before taking out a payday loan. They may just make a small extra charge rather than giving you a bad credit report.
Using payday loans for groceries or other items? Consider the true cost before making a decision. Compare the cost of using a payday loan (or cash advance) to the fees charged for taking a cash advance on your own credit card. Can family help, Rather than taking out a payday loan could you borrow some money from your family to tide you over?

WHAT IS THE COST OF A PAYDAY LOAN?

Several sources, including a consumer report by the FTC (Federal Trade Commission) and the CFA (Consumer Federation of America) state that usual the usual APR is between 350 - 650% with some as high as 780%.

A payday loan of $100 ranges in cost between $15 - $30. If the loan is not repaid by the pay date then it can be renewed with another fee due at each renewal. A payday loan of $100 can cost $60 in fees after 3 renewals.
Look online for the best payday loan deals, as with many services you can save money by taking out a online payday loan.
Before taking out any sort of loan it is always a good idea to shop and save money.
Think and work out your true needs before taking out payday loans.