Payday Loans - Approval Guaranteed

If you have ever responded to an ad like this, you may have been ripped off at a much higher rate than you can imagine. Payday lenders are common sources of loans for unsuspecting individuals and families from low-income homes.

Most people that use payday loans are desperate for fast cash. Sometimes it is to fix a car or paying an overdue utility bill. The real tragedy is when a medical bill is paid from a payday loan.

For an upfront fee, you can borrow a couple hundred dollars for two weeks. A $40 fee may not sound like much, but every 2 weeks, it can really add up. In fact payday loans frequently have interest rates exceeding 400% APR. Loan sharks actually offer lower rates.

The predatory nature of these loans has not gone unnoticed. Georgia, North Carolina and Pennsylvania took steps in 2005 and 2006 to kick out payday lenders. Many states in the northeast also ban high-interest payday loans. However, nearly all of central and western states allow these predatory loan products.

If you need a payday loan, try going to your bank or credit union. In fact, many credit unions offer payday loans at a more reasonable 14% APR. Almost anything is better than falling victim to a predatory payday loan.

Kenneth Long is Executive Director of Vision Credit Education, Inc.

http://www.stopccdebt.com