A: Payday Loans Provide Help to Hundreds of American Families Like Yours Every Day

Payday loans have been vilified over the last few months, sometimes being cited as the cause for the current economic downturn we’ve found ourselves in recently. However, don’t be too quick to write off the payday loan industry. There are hundreds of people across the country that have used a payday loan responsibly and have not suffered financially as a result.

For those who do not have a perfect credit history, securing a loan at a bank is not an option. Especially as banks continue to make their lending requirements increasingly strict, people are looking for another way to get access to the funds they need. Applying for a payday loan does not mean that you are not financially responsible; it just means that you need a little help and your local credit union just is not willing to help you out. Most people who use payday loans know how to budget and how to manage their loan so that they come out on top.

If you are concerned about the high interest rates that are often associated with these loans, consider this:

• $100 payday advance with a $15 fee is 391% APR

• $100 credit card balance with a $37 late fee is 965% APR

• $100 utility bill with $46 late/reconnect fees is 1,203% APR

• $100 bounced check with $54 NSF/merchant fees is 1,409% APR

• Examples obtained from CFSA.net and bankrate.com. APR was calculated by taking the fee and dividing it by the 14 day loan period and then multiplying it by 365 days.

A payday loan is just one option that you can choose should you find yourself in a position where you just can’t make your next bill payment. Working with your current budget and using your payday loan to help you pay the bills until your next check.