How much will a. , payday loan cost?

Size: px

Start display at page:

Download "How much will a. , payday loan cost?"

Branden Barnaby Reed
8 years ago
Views:

1 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $0.95 $62.50 $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $ $ $ HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

access business. $250.00 $0.95 $62.50 $313.45 Howmuch willa $ 250.00 14day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $313.45 $376.90 $503.80 $630.

2 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $0.95 $62.50 $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

69 % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans

3 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $1.91 $ $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $ $1, $1, HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

access business. $500.00 $1.91 $125.00 $626.91 Howmuch willa $ 500.00 14day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $626.91 $753.82 $1,007.64 $1,261.

4 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $1.91 $ $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

75 % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans

5 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $2.87 $ $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $1, $1, $1, HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

access business. $750.00 $2.87 $187.50 $940.37 Howmuch willa $ 750.00 14day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $940.37 $1,130.74 $1,511.48 $1,892.

6 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $2.87 $ $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

76 % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans

How much will a/an. loan cost? AUTO TITLE LOAN SINGLE PAYMENT. Thirty Day. Ask Yourself... How Long Could It Take to Repay a Loan?

How much will a/an. loan cost? AUTO TITLE LOAN SINGLE PAYMENT. Thirty Day. Ask Yourself... How Long Could It Take to Repay a Loan? AUTO TITLE LOAN SINGLE PAYMENT You Can Lose Your Car If you miss a payment or make a late payment, your car can be repossessed. A er reviewing the terms of the loan, you are not required to choose this