Payday loans are very common in the United States. These loans are very useful for everyone who runs short of cash at any time. Of course, like all other loans and credit facilities, these loans, too, have some rules governing them. These loans can surely get you out of some sticky situations. Especially, towards the end of the month, when you have spent all your money and are in need of money, these loans turn out to be a great help.
Payday loans are usually due on the borrower's next pay check date. The regulations on these loans say that the interest charged on these loans cannot exceed 30% for the two week period. The normal rates of interest that are charged on these loans are from 15% to 30% for the two week period. It sure is a huge interest for such a short term, but irony is that the interest charged is so high just because of the short term of the nature of the loans. If you translate these loans to an annual percentage rate they come to about 390% to 780%.Read more »