Wednesday, June 16, 2010

Alternatives to PayDay Loans

Source: National Consumer Law Center

The NCLC examines affordable alternatives to PayDay loans. They indicate that an affordable alternative should satisfy the following requirements.

• Have an annual percentage rate (APR), including fees, of 36% or less;
• Have a term of at least 90 days, or one month per $100 borrowed;
• Require multiple installment payments rather than a single balloon payment;
• Not require that the borrower turn over a post-dated check or electronic access
to a bank account.

Read report.

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