Comparing payday loans to late fees

Sitting around and simply considering all of the fees that are associated with a payday loan can be pretty scary for a lot of consumers. Making the project even worse is the fact that there are plenty of fees that are far more expensive that can quickly and easily chew up all of the free money you may have had. This is never a good situation, but a lot of consumers do not realize just how bad the economic outlook of their bank account could be if they did not obtain a payday loan when they need some quick access to cash. Many consumers simply think that making due and paying late fees is much cheaper and easier than working with a payday loan company. There are some circumstances where this line of thought is correct; however, there are plenty of other circumstances where this is grossly incorrect. For example, when you are first working to get a payday loan it may seem like a lot of headache and hassle. This is not necessarily the case though, many people are able to simply spend 10 minutes or so applying for a payday loan from a local business. Applying online can be an even faster process. This can give you the money you need quite quickly, no matter what time of day it is.

The average prices for paying your bills late may vary, but the standard percentage rate that is charged typically does not change. This number tends to vary somewhere in the range of 7% to as much as 10% easily. Just imagine the problems if you are late on a couple of small bills. This could easily consume a hefty bit of your next check. However, let us assume as well that you made a small error in your bank balance, not only would you bounce the check you just wrote for the utility bill, but it would also have a late fee added as well since it did bounce. It we assume that your bank charges a fee of $30 for the bounced check, and your utility company charges $30 as well. That is already $60 in fees alone. This number may seem a bit steep, but we certainly are not finished yet. Just remember, you need to add on the standard price of your utility bill, for this example we will choose only $100. This has taken your standard $100 bill and turned it into a massive $160! Now if we add on a late fee of 10% you are looking at a bill of $170 instead! Just imagine what can happen if another check bounces at the same time. Suddenly your $100 utility bill has turned into an easy $230 bill just because two checks bounced at the same time. Now consider that you had gotten a Payday Advance for $200 that would have covered the two checks comfortably. The fees would have been in the range of only $30. Talk about a substantial savings.

Of course, not everyone likes the idea of using a payday loan. This is perfectly normal, however for those who are concerned about saving as much money as possible there are very few things you can do to save as much money as avoiding bounced check fees. With a price tag of approximately $60 for each check that bounces, avoiding this unexpected expense is a huge necessity.

Weldon Taylor

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