Repair Your Credit | The After-School APR Special (Pt. 6)

Want to know what your loan costs?

You want to “Repair Your Credit.” That’s why you’re here.

Last time, if you’ll recall, we were talking about what opponents of the short term loan industry says to try to get you to believe that the annual percentage rate on said loans was just out of sight. Never mind that that the majority of payday loans are two-week loans where an annual percentage rate is less than useful. It doesn’t tell you what you’re going to be paying for the two-week pleasure of the money loaned, which is exactly what people want to know. But whoever accused the government of serving the people?

Their argument as unforgettable after-school special

To further explain this, let’s take a closer look at the argument offered forth by opponents of the personal loan industry:

Joe Sixpack Opponent: “Payday loans charge 391 percent interest, I tell ya! That’s too much for hardworking American families!”

Ear of the Consumer: “Gosh! That means it’s going to cost me four times the amount of the loan in interest charges!”

Voice of Reason: “No, no, you’ve got it all wrong. Joe, keep quiet. Ear, do what you do. 391 percent is the annual percentage rate. Ear, you’d have to pay this if you borrowed a two-week cash advance on your paycheck and allowed it to lapse for an entire year, or 26 times in a row. That’s without ever paying a dime towards the original loan amount. Would you do that, Ear?” ... click here to read the rest of the article titled "Repair Your Credit | The After-School APR Special (Pt. 6)"