Pay day Loans and Institutions By Taylen Eggum

Pay day Loans and Institutions By: Taylen Eggum

FR Pay Day Loans -is a relatively small amount of money lent at a high rate of interest of the agreement that it will be repaid when the borrower receives their next paycheck. • Also called: Salary loan, payroll loan, or a short-term loan 2

Institutions FR • The place or business that issues pay day loans 3

Pay Day Loans • • • Advantages Simply and Convenient to get unsecured Loan Often don’t require mortgage Can get with steady Job with good income Small Loan amounts 4

FR Pay Day Loans • • • Disadvantages “Once you take the first, you’re already one foot in the quicksand” Highly enticing and luring product May be borrowing from more than 1 High interest rates Americans take out roughly 50 million dollars a year 5

FR Where To Get One? States That Don’t Allow Them 13 37 Legal Not Legal • • Arkansas Arizona Connecticut Georgia Maryland Massachusetts New Jersey • • • New York Pennsylvania North Carolina Vermont West Virginia 6

Usury FR • the illegal action or practice of lending money at unreasonably high rates of interest 7

Why Pay Day Loans are Bad FR • Nothing good comes from them • Within 2 weeks must pay on average $400 back • Usually end up with drugs, debt, or danger • Misleading Advertisement • Average APR is 400% 8

Advertisments FR 9

How to Avoid Pay Day Loans FR • Bad Credit • Lack of Savings • Ask a friend for a loan • Put off the expenses • Maybe get a part time job • Borrow from credit union 10

Alternative to Pay Day Loans Cash Advance FR • Cash advance on a credit card Allows to get cash out of an ATM or bank • Getting a cash advance is easy but expensive • 5% charged amount 11

Even services • • • FR Instapay-allows you to advance some of your next paycheck up to 13 days Does not charge interest Company wants to put payday loaners out of business Linked to your bank account 28% of users took out a pay day loan a month before 12

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Work Sited FR • https: //20 somethingfinance. com/payday-loans-ban • https: //www. moneyunder 30. com/payday-loan • https: //www. techbullion. com/the-advantages-and-disadvantages-of-paydayloans/ • Billings Gazette 14