QAre Payday Lenders Really Loan Sharks?
AThere is a misleading article out done by the FTC that lead people to believe that ALL payday loans are rip offs. They compare lenders to loan sharks on the streets due to the high APR they charge. The APR figured can easily be compared with the calculated apr of late fees or disconnect fees. Those APR's are considerably higher than most payday loan lenders. And let's say you are late on a mortgage payment. There is an uncalculatable cost to this. That is the cost of a ding on your credit report. When you add it all up, there are times when payday loans are CONSIDERABLY CHEAPER than the alternatives.