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Payday Loans – A Convenience You Can not Pay!

Many people in Iowa, including seniors, are waiting for “Payday” loans to help them meet their needs. (Sometimes these loans are called “Cash Advance Loans”), “Check Advance Loans” or “Delayed Deposit Checks”). They make these loans to people who need cash before the day of payment (or the day of the social security deposit) to pay the rent, buy food or satisfy some other need. Unfortunately, many people in Iowa are not aware of the costs of a loan. payday loan singapore As one person explains, “It can be like working for 5 days.

On a Payday loan, the lender gives you cash. In return, you give the lender a personal check or permission to automatically withdraw cash from your bank account. The lender may cash your check or withdraw funds from your bank some day in the future, usually the next payday.

The problem with payday loan singapore is that their costs are very high. The cash you receive from the lender is usually much less than the amount of the check or withdrawal. For example, a provider can give you $ 200 in cash for your $ 225 check that the lender will charge in two weeks. In this case, interest and charges would be $ 25 and the annual interest rate would be an incredible $ 325%! This is an interest rate that few can afford, especially low-income Iowa people who live from a work check or from a social security check to another. Here is another example: if you got a payday loan singapore of $ 200 every 2 weeks, you would pay $ 650 in interest and charges for a period of one year.

Iowa law sets limits on charges that may be charged on payday loan singapore. In addition, both state and federal law require that the charges of the providers, including the Annual Percentage Rate, be clearly disclosed. So, in the example above, you would have to be informed in writing annually that the interest rate was a huge 350%. These disclosure laws help people in Iowa better understand how expensive Payday Loans really are.

If you have emergency cash needs, you can save by working with a credit union or a community bank. Many banks and credit unions have small loan and overdraft protection services to help you with short-term monetary needs. You can also try to talk to your creditor or owner to try to come to an agreement with a payment plan or other arrangement.

If you have questions about these or other legal issues involving people over 60, please contact the Legal and Direct Line for Seniors in Iowa.

Editorial Staff

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