This Is What a Payday Loan Actually Costs You
What Is a Payday Loan? A payday loan is a small-dollar loan, often for $500 or less, that typically becomes due in two to four weeks. Payday loans are sometimes referred to as cash advance loans or check advance loans. Payday Loan Costs Payday loan costs range from $10 to $30 per $100 borrowed in states that don't impose interest rate caps, according to the Consumer Financial Protection Bureau. According to the Consumer Financial Protection Bureau, nearly 70% of payday loan borrowers take out a second payday loan within a month. What if You Can't Afford to Repay a Payday Loan? If you can't repay a payday loan, you can expect debt collectors to start hounding you. Take on Extra Work If you can't afford your payday loan or payday loans are your only option for paying your regular bills, making more money may be the only fix. Bad credit personal loans: Even if you have a low credit score, you may qualify for a bad credit personal loan with a lower interest rate than a payday loan.