Rowery

xkekg34fa

You have to look quite carefully at a payday lender's site to see the actual amount of interest that is being charged, so it's [link widoczny dla zalogowanych] no surprise that so many [link widoczny dla zalogowanych] people are confused about it. If [link widoczny dla zalogowanych] all you see is the APR then you're bound to think that the interest rate is high, after all that is a four figure amount and usually if it's 30% then it's high. When you look [link widoczny dla zalogowanych] closer though, you'll be able to see that the situation [link widoczny dla zalogowanych] as it first appears is not quite right.
APR Explained
Actually the idea that the interest rates for pay day loans are high is based on a wrong theory. If all you see is a snippet of the APR then you could certainly be forgiven for thinking that they have got high rates of interest. However [link widoczny dla zalogowanych] the APR is not a good description for the rate of interest for a loan of this sort because it only lasts about a month at the most, whereas [link widoczny dla zalogowanych] the APR measures interest annually.
It is a legal requirement for every loan offered to make it clear what the APR is. That's useful for the [link widoczny dla zalogowanych] consumer usually because most loans do last at least a year, and often more. By looking at the APR they are able to judge more easily how expensive each loan actually is. When a loan only lasts a month though, there is no good reason to have the APR displayed. That is when the law becomes quite ridiculous.
It is quite easy to demonstrate the absurdity of using the APR to measure pay day loans. It would be like trying to see how expensive a 2 year loan is by measuring the rate for every 24 years, or a 4 year loan by the 48 year rate. Those descriptions of the interest rate are always going to be extremely high, but they are not going to tell you anything useful. That is precisely the case with payday financing and the APR though.
How Pay Day Loans Can Be Helpful
Even though the interest rates are not actually as high as they [link widoczny dla zalogowanych] appear to be from looking at them first of all, it is still not a good idea to use them abundantly. It's certainly no good trying to use them the way you would a normal loan, to [link widoczny dla zalogowanych] spread out payments for something expensive. Because of course there is no spreading out of the payments, they all have to be made at the same time.
With most loans you would be able to use them to make a luxury purchase, but that would not make any sense with a pay day loan. Yes you [link widoczny dla zalogowanych] could get that item now, but you'll have to pay for it the following month. If you can't afford to do that then [link widoczny dla zalogowanych] you'll be in trouble with the rising costs [link widoczny dla zalogowanych] of the loan. And if you can, then you just made the purchase more expensive for the sake of getting it less than a month sooner.
Some ways pay day loans are useful are:
1. Car Repairs
2. Pay Utility Bills
3. Emergency Travel Costs
These are only a few examples of the sorts of things that payday loans are useful for. It should be noted that, in all of these cases, they will be things that cannot be put off until the [link widoczny dla zalogowanych] following month. So if there is a crack in a window [link widoczny dla zalogowanych] that you can wait to have repaired then that is probably not something that is going to be necessary to get a pay day loan for. However if the window is completely broken, then that might well be something that you need to have repaired immediately.