118 Payday Loans

It sounds too good to be true…a website that offers to loan you up to $1,090 with a return rate of 180%! You would love how much money you can make in a day by spreading the word about your payday loans website. But read on and find out whether this is such a great opportunity for you or not.

Why does payday loan interest run up?

Most payday loans run interest rates of about 275% APR. The purpose of these high interest rates is not always clear, but it appears to be linked to the lenders’ hope that borrowers will default on their loans. This generates expensive collections and legal expenses, which the lenders can then recoup.

Unsubstantiated longevity benefit of payday loans

Despite the severe criticism levied against payday loans, a recent study by the Pew Charitable Trusts found that there may be some benefit to the use of these loans in terms of overall longevity. The study, which is based on a review of scientific literature, suggests that people who use payday loans are more likely to live longer than those who don’t. The study’s authors say that one possible explanation for this is that short-term debt stemming from payday loans can be a “buffer” against adverse life events. For example, those who use payday loans may be less likely to default on their mortgages or other long-term debts because they can rely on quick cash to cover unexpected expenses. While the findings of this study cannot be considered conclusive, they do provide some food for thought as policymakers continue to debate the merits of payday loans.

How much can you borrow using payday loans?

Charging interest rates on payday loan debts can be expensive, but that’s not the only cost of using these loans. Here’s a look at some of the other costs associated with payday loans: >>> The cost of interest on a payday loan could quickly add up if you borrow more than your monthly income allows. Other costs of using payday loans include fees for borrowing the money, plus the opportunity cost of not having that money available for other needs. Although some people may find these costs worth it, others may find them unaffordable or discouraging. The key question is how much can you borrow and how much will those costs amount to?

When to choose an installment loan versus a payday loan

There are two main types of loans, installment loans and payday loans. Here’s a quick overview of the differences between them: -An installment loan is a longer-term loan that you repay over time. -A payday loan is a shorter-term loan that you pay back in one shot. Here are some factors to consider when deciding which type of loan to take: – installment loans typically offer lower interest rates than payday loans, but have more paperwork and requirements associated with them. – getting an installment loan typically requires a good credit score and an understanding of your repayment plan. – if you can’t afford to repay your installment loan on time, you may be able to make extra payments throughout the term to reduce the amount you owe. – payday loans are easier to get because they usually require no credit check. However, they have higher interest rates than installment loans and often have more restricted borrowing limits.


Sometimes things happen that we can’t control, and that’s when payday loans come in handy. Payday loans can help us bridge the gap until our next paycheck arrives, and they’re usually very easy to get approved for. Make sure to compare different lenders before you decide which one to use, but be sure to get a loan that will fit your needs best.