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Sunday, June 21, 2009

Is A Payday Loan A Bad Loan?

Yes. You should do whatever you can to prevent having to take out this type loan. Any loan that has a high interest rate is red flag that it is bad. Say you borrow $1,000 that will take four years or 48 months to payoff with an interest rate of 18 percent. It will cost you $410 in interest over the term of the loan. That's almost half the amount you borrowed. Many other bad loans require you to pay late fees that are through the roof. Usually 35 percent or more.

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