In an article recently published by the New York Times, Payday Loans, also referred to as Cash Advances, are compared to a taxi cab. Some may complain about the fees associated with Payday Loans and say that the rates are too high, but these loans were never meant to be a long term solution. They compare this idea to taxi cabs; the prices may be a little high per mile, but they are intended for short term use. Because of the higher cost of usage, you wouldn’t take a taxi on a road trip, just as you shouldn’t use a Payday Loan as a long term solution. Both of these concepts were created for short term usage, for convenience purposes, to help you out when you are in a bind or need a lift.
Some legislators and banks do not have anything good to say about the Payday Lending industry. However, banks especially, while pointing their finger at the Payday Loan industry,ignore the fact that they have three more fingers pointing back at themselves. Most banking and financial institutions charge up to as much as 600% interest for a bounced check,and sometimes even more than that for overdraft protection services.
According to the Federal Reserve Board, there are three types of fees that may be associated with writing a check for money you don’t have. One such fee may be an overdraft fee, which usually equals around $30 and varies by bank. If you don’t have an overdraft plan, and the bank doesn’t want to cover your over drafted money, they will send the check back to you with a bounced check or insufficient funds fee. Also, the person or company you wrote the check to may also charge a fee for that bounced check, or not paying on time, etc.
So every time you overdraft your bank account, you are paying approximately $20-30 in overdraft fees. In addition, most banks have a maximum amount they will cover of overdraft, such as $300 or $500, fees included, so that they don’t get too much in the hole every time you overdraft. And along with all of this, other banks may charge an additional $5 or even $10 a day for everyday that the account is over drafted.
Here is a small scenario for you. Let’s say you don’t keep perfect track of your bank account and you overdraft three times in one day, or even if you do keep track, you have three bills that are due and you know you have overdraft protection and must pay these bills. You go ahead and pay the bills, over drafting three times. You will get three overdraft fees, at $20-$30 each, plus the money you over drafted for so your fees could really start to add up. Let’s say your bank also charges per day that you don’t refill your account. You don’t get paid for another week so you are spending $70 (at $10) per day for having your account over drafted, the three overdraft fees, plus whatever you wrote the checks for. These can really start to add up and you may begin to feel very overwhelmed.
Scenario number two. Come to Check City and get a Payday Loan. Our fees are much cheaper than a bank overdraft fee, you will save yourself the stress and hassle of not having any money and you can pay it off as soon as you get paid again. We don’t cash your check until the date you specify. It is an easy and much more stress free alternative to bouncing checks and paying overdraft fees. Check City does Payday Loans by phone, online and in our many Store Locations. Visit us today to fill out the Payday Loan application and get your money as soon as tomorrow (when applying online). You can walk out of the store with your money today!
