Cash Advance vs Payday Loan Secret to Extra Cash
Exploring Payday Loans
Payday loans, on the other hand, are short-term, high-interest loans intended to cover expenses until your next paycheck. These loans are typically easier to obtain, as they require minimal documentation and are available even to those with poor credit. However, the cost of payday loans can be significant. The average annual percentage rate (APR) for payday loans is around 400%, far exceeding typical credit card APRs2. This high cost can trap borrowers in a cycle of debt if not managed carefully.