New technologies will Help.

Detractors have been accusing payday loan lenders of being predatory lending institutions, but not many who have had to use their services feel the same way. Many people are thrown off by the mention of the annual percentage rate, or APR that gets frequent circulation. Now, the APR figure that gets mentioned may be true in a very limited context, but how it exactly works doesn’t get reported. The rate that gets mentioned is 361% APR, which is enough to scare anyone away. However, to actually get to 361% APR, an individual would have let their loan lapse for an entire year to accrue that much interest. Just like any other service, a payday loan lender will add interest fees to late payments. Look at it this way: If you get a payday loan for $100 on a two week term, you pay $15 to $30 in fees or $115 to $130 in the end for the loan, which works out to 15 – 30% interest. That may seem like a lot, but when compared to a $75 late fee that you would get from making a late mortgage payment that you could avoid by getting a payday loan if you were a hundred dollars or so short on, that $15 - $30 isn’t so bad. Also, applying is quick, easy, and approval can be incredibly fast. You can even get your payday loan deposited straight into your bank account through direct deposit within a few hours, and then you can move on with your life. What a great convenience for a small price.

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