When it comes to finances, a lot of people are oblivious of the many terms used and their use. This is in the same case for payday loans. A pay day loan is an amount of money that is borrowed by an employee/ employer at a high interest rate upon agreement that the amount will be settled immediately the borrower receives the next pay check. Payday loans are usually given on a short term basis and can be referred to as cash advanced loans or check advanced loans.
Depending on the country you live in typical payday loans are usually accompanied by lending acts. This act protects borrowers by forcing lenders to disclose their finance charges though numerous lending agencies have a reputation of doing contrary.
Payday loans came as a result of credit institutions realization that most borrowers have either low incomes, bad debts or less access to credit cards.
Annual Percentage Rate: Is the additional percentage that you will be required to pay once you secure your payday loan.
Continuous Payment Authority: as a process in obtaining your payday loan, lenders under the continuous payment authority are allowed to access your bank account. You will therefore require authorising (sign) access of your debit account. Signing off your debit account protects you from the frequent pestering of lenders every end month.
You can also stop a lending company from deducting money from your debit account to offset the payday loan. In case they fail to do so, they will be liable to refund you the extra amount deducted after your authorization.
While it may be impossible to survive in the current error without a loan, it is always good to try and select a loan that you can pay in the shortest time possible. There are also many payday loan companies to choose from. At acta.fi you can find a number of financial solutions and loans types at your disposal.