Payday loans can provide much-needed cash when your paycheck is not enough. However, they often come with high fees and interest rates. These can cause your debt to spiral out of control.

You can avoid payday lenders by looking for a credit broker that offers price comparisons. They must be regulated by the Financial Conduct Authority (FCA). You can also find a reputable lender online.

Easy to get

When you need fast cash, it can be tempting to take out a Payday Loans Salt Lake City loan. These short-term loans are available from many high street lenders and online. However, they can be expensive if you don’t pay them back on time. They can also lead to cycles of debt if you have to roll the loan over to cover expenses.

Payday lenders charge high fees, which effectively equal an annual percentage rate (APR) of 400%. This makes it easy for borrowers to get into a cycle of debt. However, it’s important to remember that there are alternatives to payday loans. For example, credit unions can offer low-interest personal loans. You can also shop around for deals by using a price comparison site that is regulated by the Financial Conduct Authority.

Fast to get

Payday loans can be obtained quickly, but they come with high fees and interest rates. Moreover, they are typically due on your next payday and can lead to a cycle of debt. It is better to find a safe alternative like a personal loan or credit card cash advance.

A payday lender usually asks for your name, address and bank account information to verify your identity. They also want proof of income. This doesn’t need to be from a traditional job, but it should be recurring income.

Many consumers use payday loans to cover unexpected expenses or to bridge the gap between paychecks. Unfortunately, most of them cannot repay their loans on time. This leads to more fees and charges, which causes them to take out new payday loans, resulting in a vicious debt cycle.

Low interest rate

Despite the claims of many payday lenders, these loans are extremely expensive. Their fees, which are typically $15 per $100 borrowed, can translate into annual interest rates of up to 391%. This is more than double the rate of mortgages and triple the average rate of credit cards.

These high fees can create a debt trap for borrowers. If borrowers cannot afford to pay off their loan within the two-week repayment period, they will likely roll over the debt, paying another round of fees. This can quickly spiral into a cycle of debt that borrowers can’t break out of.

A better alternative to payday loans is a personal loan from a bank or credit union. These loans are available to borrowers with bad credit and don’t carry the same fees as payday loans.

Military protection

Military life can be tough on families, especially when finances are tight. That’s why it’s important for service members to research alternatives to payday loans and be aware of CFPB rules that protect them from predatory lenders.

The Military Lending Act (MLA) prohibits creditors from charging military service members more than 36% of the annual percentage rate on payday, auto-title and tax refund loans. This cap does not include finance charges, credit insurance premiums or other add-on products. It also prohibits creditors from requiring service members to set up an allotment or AZ other means to pay back the debt.

Military service members should beware of phishing scams that try to steal their personal information or money by pretending to be from DFAS or other military organizations. They should always use caution when clicking on emails and should never share their passwords or account information with anyone.