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The tiniest family savings is much better than a pay day loan

The tiniest family savings is much better than a pay day loan

They are called numerous names: payday advances, cash advance payday loans, check advance loans, post-dated check loans or deferred deposit loans. What they’re, though, are short-term, high-interest-rate loans provided to borrowers who require only a little supplemental income until their next paycheck.

This is how it goes: Generally, a borrower writes a personal check payable to the lender for the amount borrowed — plus a fee, which represents the interest if you’re not familiar with this game. The borrower is paid by the lender the level of the check without the fee, and holds the check — frequently before the debtor’s next payday. Similar outcome can certainly be accomplished electronically: the financial institution deposits the quantity lent to the borrower’s bank checking account, then debits the loan amount — plus a fee — the next payday. Read more