What are the charges related to Payday loans?

Payday loans ideally charge a percentage of the total amount borrowed and some other taxes on it. The amount for these charges can vary depending upon how much money you need, local regulations, and the lender. The common fee charged by lenders is 15 dollars per 100 dollars borrowed. For example, if your borrow 400 dollars, you will have to pay 460 dollars on your next payday assuming a fee of 15 dollars per 100 dollars.

Let us now look at some of the other chargers that are related to payday loans:

1.   Rollover Charges

If you are unable to pay when your loan is due and your state law permits rollovers, the payday lender may allow you to pay only the fees due and then the lender extends the due date of your loan. You will then be charged another fee and still owe the entire original balance. Using the above example, if you pay a renewal or rollover fee of $45 you would still owe the original $300 loan and another $45 fee when the extension is over. That’s a $90 charge for borrowing $300 for just four weeks.

2.   Repayment Plans

Some state laws require payday lenders to offer extended repayment plans to borrowers who experience difficulty in repaying payday loans. These laws vary by state, and may or may not permit or require a fee for using a repayment plan.

If your state requires a lender to offer an extended repayment plan, you may be able to get additional time to repay your loan without any additional costs or fees. This means that you can pay off your loan rather than borrowing again, incurring more fees, and getting further behind in debt.

3.   Late fees

In addition, if you don’t repay the loan on time, the lender might charge a late or returned check fee, depending on state law. Your bank or credit union may also impose an “NSF” or non-sufficient funds charge if your check or electronic authorization is not paid due to a lack of funds in your account.

4.   Prepaid Debit Card Fees

If your loan funds are loaded onto one of these cards, there might be other fees. There could be fees to add the money to the card, fees for checking your balance or calling customer service, fees each time you use the card, and/or regular monthly fees.

Final Thoughts

Be sure to read the loan agreement carefully to spot all of the fees and costs before you take out a loan. If you have questions about charges related to your payday loan, you can find more details at https://paydayplus.net/100-payday-loans.

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