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Pay day Loans and Institutions

Pay day Loans and Institutions. By: Taylen Eggum. Pay Day Loans. -is a relatively small amount of money lent at a high rate of interest of the agreement that it will be repaid when the borrower receives their next paycheck. Also called: Salary loan, payroll loan, or a short-term loan.

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Pay day Loans and Institutions

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  1. Pay day Loans and Institutions By: Taylen Eggum

  2. Pay Day Loans • -is a relatively small amount of money lent at a high rate of interest of the agreement that it will be repaid when the borrower receives their next paycheck. • Also called: Salary loan, payroll loan, or a short-term loan

  3. Institutions • The place or business that issues pay day loans

  4. Pay Day Loans • Advantages • Simply and Convenient to get unsecured Loan • Often don’t require mortgage • Can get with steady Job with good income • Small Loan amounts

  5. Pay Day Loans Disadvantages “Once you take the first, you’re already one foot in the quicksand” Highly enticing and luring product May be borrowing from more than 1 High interest rates Americans take out roughly 50 million dollars a year

  6. Where To Get One? States That Don’t Allow Them Arkansas Arizona Connecticut Georgia Maryland Massachusetts New Jersey • New York • Pennsylvania • North Carolina • Vermont • West Virginia

  7. Usury • the illegal action or practice of lending money at unreasonably high rates of interest

  8. Why Pay Day Loans are Bad • Nothing good comes from them • Within 2 weeks must pay on average $400 back • Usually end up with drugs, debt, or danger • Misleading Advertisement • Average APR is 400%

  9. Advertisments

  10. How to Avoid Pay Day Loans • Bad Credit • Lack of Savings • Ask a friend for a loan • Put off the expenses • Maybe get a part time job • Borrow from credit union

  11. Alternative to Pay Day Loans Cash Advance • Cash advance on a credit card Allows to get cash out of an ATM or bank • Getting a cash advance is easy but expensive • 5% charged amount

  12. Even services • Instapay-allows you to advance some of your next paycheck up to 13 days • Does not charge interest • Company wants to put payday loaners out of business • Linked to your bank account • 28% of users took out a pay day loan a month before

  13. Work Sited • https://20somethingfinance.com/payday-loans-ban • https://www.moneyunder30.com/payday-loan • https://www.techbullion.com/the-advantages-and-disadvantages-of-payday- • loans/ • Billings Gazette

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