Advanced Payday Loans

They're everywhere - payday loans, cash advance loans, checks loans and post dated check loans. These short-term, high rate loans go by a variety of names and come at a very high price. Companies offering these types of quick cash options spend big money on television, radio, newspaper and internet ads that make getting extra cash sound like a fast, easy solution to anyone's money problems. These offers often appeal to people with no credit, bad credit, or those who are overextended living from paycheck to paycheck. Consumers who choose to invest in these types of loans often realize too late that what they thought was a solution to their financial problems, was actually a costly financial blunder.

The business of advancing people money towards their paycheck is considered unethical by some. The reality of these types of loans is that borrowers often end up repaying these loans at a rate of 500% or more per year. Aside from the high interest rate, payday loans are also loaded with fees and additional charges, many of which are disclosed in the fine print of the contract or application.

Under the Truth in Lending Act, the cost of these loans as well as other types of credit must be disclosed. The borrower must receive, in writing, the finance charge and the annual percentage rate (APR). It is the borrower's responsibility to read the loan agreement thoroughly before signing as it is a legal and binding document. By signing, the borrower is legally obligated to repay the loan according to the conditions and specifications cited in the agreement.