A payday loan is a small, short-term loan that the borrower will be paid back on the next payday. The loan is usually $ 1000 or lower and has a very high interest rate. These loans are called cash advances or cheque loans. You may need to allow the creditor to access your check account or provide a pre-check of the entire balance amount. This will give the lender the option of taking back the loan when due.
The lender can provide the amount of credit to cheque accounts in the form of cash, cheque or electronic transfer. The money can also be placed on a prepaid debit card. The loan usually has to be repaid on a one-time payment, but it is not uncommon for the loan to be taken over or renewed or interest payments.
The loan can be paid in installments for a certain period of time. In the United States, The size of the mortgage industry is approaching $ 46 billion. According to the Pew address Trusts, nearly 12 million adults in America use salary loans every year. Around 5.5% of adults from all over the country have received payday loans for the last five years.
About 3/4 of the borrowers used store loans and about 1/4 of them owed online. According to state regulatory data, debtors receive eight Pay-per-year loans. They spend around $ 520 on interest and the average loan size is $ 375.