Backing the payday loans industry, a new study reported that now the payday loan rates are more attractive than they were ever before. This statement was found in a staff report of New York Federal Reserve Bank.
Payday loan industry has often been facing various controversies, especially related to its higher rates of interest. Now the new report has really backed the industry.
The report by New York Federal Reserve Bank Staff reveals that payday loan rates are more attractive than the rates of some banks and other financiers.
The fees levied on the customers by some financial institutions are really higher than the actual rates of payday loans. The late payment fees for credit cards remain a best example.
The fees charged for a bounced check of default payment of some bills, etc. is also higher. Compared to these rates, payday loans are offered at lower rates.
This will be clear to you when you go through the following figures. If the normal APR for a bounced check is 100 percent, the late payment fees can go up to 700 percent.
The charges levied on the customers by the utility companies for reconnection are still higher. In most of the occasions, this rate is as high as 1300 percent APR.
The study has concluded that the payday loans rates are in most cases are more attractive than the bank fees. The study says that it really beat the bank rates.
The report adds that this kind of cash advance loans can be highly useful and handy in times of emergencies, despite their higher interest rates. Anyone can successfully deal with emergency situations, using this kind of short term loans.
Due to the higher interest rates, they are to be used in a very responsible manner. Otherwise the customers are sure to fall into deep troubles.
Now there are many articles are available on the net. These articles provide the customers a good option to compare the various schemes and interest rates of different lenders.
Additionally these articles on payday loans also tell you how to apply for payday loans. Since all these facilities are available, it is easier for the customers to select the best lender other than waiting for some to appear after clicking on the ‘APPLY NOW’ button.
More interestingly this facility is offered to all the customers of payday loans at free of cost. This makes the customers analyze and compare the lenders.