Low Fee Payday Loans

Written by Jeremy Horelick
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Low fee payday loans are an established credit resource for many underpaid Americans. In addition to low wages, a slow economy and high taxes can cripple families (as well as individuals) trying to make ends meet. As a result, short-term credit becomes an invaluable solution for many people.

Over the years, big government has fought to deprive its citizens of these services despite the redoubled call for more credit avenues. Many of these government agencies have decried the "high" fees charged by payday loans companies, arguing that these predatory businesses knowingly deceive their customers. In reality, however, it's the major institutional lenders who often engage in the most dubious practices.

Low Fee Payday Loans vs. Credit Cards

Take a standard credit card that charges a 15% APR and compare it with payday advance loans. Consumers who pay their credit card bills on time and in full each month never have to worry about late fees, finance charges, and interest (not to mention interest on those fees and charges). But this describes very few Americans, especially when economic times are tough. Hence, these extra charges, that may range upwards of 30 dollars a day on some credit cards, are a reality for many card-holders.

Compare that with the one-time charge of, say, 30 dollars on a 200-dollar advance loan. While critics of low fee payday loans will attempt to annualize these rates so that they represent ungodly sums, they do so knowing that this is a misleading and inaccurate methodology. That's because low fee payday loans aren't meant to be annualized, as will be made clear shortly through a case study that illustrates this point.

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