Payday Loans

Golden Valley Lending is not a payday lender

we’re a desirable alternative

Payday Loans

Golden Valley Lending is not a payday lender

we’re a desirable alternative

According to the Federal Reserve, nearly half of Americans do not have enough in savings to cover a $400 emergency expense. In other words, many Americans (47 percent) are living paycheck to paycheck. One option for these consumers when they find themselves in need of funds quickly is a payday loan.

Payments Align with Borrower’s Pay Date

A traditional payday loan is a short-term loan designed to provide borrowers fast cash to pay for immediate or unexpected expenses. Payday loans generally range from $50 to $1,000. As the borrower, you are required to pay off the loan plus finance charges on your next pay day. If you are not able to pay off the loan on your next pay date, you will be charged additional fees and finance charges. These charges contribute to the perceived expensive nature of a traditional payday loan.

Principal Isn't Paid Until the End of the Loan Term

Let’s say your vehicle desperately needed four new tires at $100 each, but you didn’t have the cash on hand to handle the expense. One option would be a payday loan. When you apply for the $400 payday loan, you will make a check payable to the lender for $400 plus the finance charges. In some cases, finance charges on a payday loan this size would be $60. You will provide a check for $460 to be deposited on your next pay period. You are required to pay the finance charge first and then the principal. When you have a large payment due at the end of a loan term it is referred to as a balloon payment.

Principal Isn't Paid Until the End of the Loan Term

Let’s say your vehicle desperately needed four new tires at $100 each, but you didn’t have the cash on hand to handle the expense. One option would be a payday loan. When you apply for the $400 payday loan, you will make a check payable to the lender for $400 plus the finance charges. In some cases, finance charges on a payday loan this size would be $60. You will provide a check for $460 to be deposited on your next pay period. You are required to pay the finance charge first and then the principal. When you have a large payment due at the end of a loan term it is referred to as a balloon payment.

If you cannot make the full payment or balloon payment at the end of your loan term or next pay date, then your loan will rollover to your following pay date. With this rollover come additional finance charges and fees. It is this rollover concept that results in traditional payday loans being especially expensive for borrowers.

Traditional Payday Loans Don’t Allow Early Pay Off

Most consumers have come to expect that you can pay a loan off early in an effort to reduce the interest you pay. It is what many would believe is a smart and responsible way of managing your loan. With a traditional payday loan, however, a borrower does not have the option to pay off the balance early. The finance fee is imbedded into the balloon payment due at the end of the loan, so the only benefit of paying early is to avoid rolling over into a new loan and incurring additional fees.

Learn about the advantages of Golden Valley Lending’s Payday Loans Alternative.

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Financial freedom may be a click away!

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