Payday Loans

What is a 'Payday Loan'?

A payday loan is a type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash. The lender holds onto the check and cashes it on the agreed upon date, usually the borrower's next payday.

How Does a Payday Loan Work?

Payday loan amounts are usually very small and less than $500.00. Payday loan businesses operate under a wide variety of titles, and may take postdated checks as collateral. Generally they charge a large fee for the loan, which puts the interest rate very high, some rates are as high as four hundred percent. Many states are working on passing regulations to help consumers that rely on these loans.

What Are the Dangers of a Payday Loan?

Payday loan businesses cause customers to become reliant on them because they charge large fees, and expect quick repayment of the money. This can make it difficult for a borrower to pay off the loan and still be able to meet monthly expenses. Many borrowers have loans at several different businesses, which worsens the situation.

Can you Get Payday Loans Using an SSI Direct Express Card With No Bank Account?

Stop to consider the fact that 7 out of 10 Americans report they live paycheck to paycheck. That's a lot of people who pay out as much as they earn. It's not surprising that so many people are financially strapped when it comes to emergency expenses. If you're not working because you're receiving benefits from the government, that emergency expense can really pose an issue.

Am I Charged SSI Payday Loan Fees?

Direct Express card loans without a bank account will have fees. Look closely at those fees and make sure you're okay with the loan fees and repayment terms. While they can be high, it may be a better option than ignoring an emergency.