5 cool facts about payday loans

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business economy
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Do you know that payday loans are better known than McDonald’s across the world? Here in this article, we will walk you through some interesting facts about payday loans:

  1. An average payday borrower can take up to 8 loans per year

If you compare that number, it sounds amazing, right? But the convenience of payday loans is what compels people to borrow them frequently. Also, because the interest rates are low, people can easily repay the money they have taken. You will be shocked to know that approximately 12 million Americans use payday loans each year. It takes up to an average person borrowing eight times a year. Research shows that borrowers spend less than $ 500 on interest charges, which does not affect their financial circle in any way.

  1. About 50% of payday loans are renewed or renewed

Surprisingly, one in five payday loans renews within the first 14 days. Although it sounds amazing, it happens in most payday loans where borrowers end up paying far more than what they were granted. Lenders provide money to borrowers who renew their loans very often. This can add up to the total charges to a large extent and easily get anyone into the debt cycle. This is why the reviews often suggest that people stay away from payday loans.

  1. Borrowers end up paying a lot more than they expect

Although this practice is not yet common, many borrowers complain that they are paying more than they initially expected. No matter what type of loan you borrow, there will always be a chance to pay back more money than you ever imagined in your wildest dream. So if you borrow a typical loan of around $ 350, you could be paying double that amount by the end. Especially since the APR rate is very high, in some states it can reach around 400%.

  1. You Can Apply For A Payday Loan With Bad Credit

Even if you have a bad credit history, you are still eligible for a payday loan. Because they’re designed to help those in dire need of cash, lenders won’t force you to give out a lot of detail. All you need to do is provide them with proof of your income, identity card details and current address. In addition, you can repeatedly request payday loans without credit check if you frequently engage in financial problems.

  1. The average payday loan is less than $ 500

Unlike traditional loans, a typical payday loan is between $ 350 and $ 500 and can be issued in a single day. The median payday loan is expected to be around $ 350. There are very few states that have increased this loan amount to $ 500. However, the real income of lenders comes from interest charges. This is the main reason why many lenders earn huge income in a short period of time. But before signing up for a payday loan, be sure to read the terms and conditions.

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