Payday Loan vs. Payoff Loan

As today's economy becomes less reliable and unstable, a lot of Americans have had to look for other financial sources. Many Americans, while still in the workforce, have had to apply for small personal loans through alternative lending companies. These Americans turn to payday loan companies. Sadly, these payday loan companies get their borrowers deeper in financial debt than before. If borrowers are looking for a lending company which will not get them deeper in debt, they will first and foremost look at and apply to the Progressive Payoff lending company. Progressive Payoff is not looking to keep their borrowers in debt, ever. In fact, their goal is to keep their borrowers out of debt, while allowing their borrowers to pay their car payments, health bills or whatever pressing financial situation they find themselves in.

Many borrowers do not read the fine print of their lending agreement. Borrowers need to know that the average payday loan lender charges an APR (annual percentage rate) of 400% and a bi-weekly renewal fees of $20 per every $100 borrowed. When a borrower is looking to borrower $500 from a typical payday loan company, they would have a renewal fee of $17.50 per $100. This money would have to be paid back within two weeks. Within two weeks, the borrower would, in total, have to pay back a total $587.50. Now, this might not sound bad to you, but did you realize you would be paying $6.25 a day simply for interest! Just in case the contract was not read in full, the borrower is also demanded to pay the lump sum amount of $587.50 in order to buyout their payday loan.

When a borrower finds an alternative lender they like, more likely than not, the borrower will use this payday loan consumer 8-11 times a year. Even when a borrower pays their loan in that two week period, they are still giving, or throwing, away $700 a year in interest alone to their payday loan company.

Now, with a Progressive Payoff Loan, on the other hand, there are no renewal fees. When our borrowers take out loans, they are set up on a six-month term, with one payment each month. As our borrowers make payments on their loan, part of every payment will always go to their principle balance of the loan. This allows our borrowers to move a step closer to paying off and or lowering their amount of interest being charged daily on their loan.

It should be known, that when borrowing with a payday loan lender, consumers are paying an average of $1.75 every day on the $100 loan, for the life of their payday loan. It should also be known that our Progressive Payoff loans have a rate $0.34 every day per $100 loan until our borrowers make their first payment. Then, after each payment, our borrower’s daily rate drops lower and lower.

Progressive Payoff offers our borrowers a 6 month window to pay off their loan. After the 6th payment is made, our borrower’s loan will be paid off. Within this 6 months period, our borrowers would have paid around $735.00 on a $500 loan. This means our borrowers are only paying $235 towards interest with their cash loan through Progressive Payoff. If our borrower were to have a $500 payday loan open for 6 months with the renewal fee set at $17.50 per hundred, they would end up paying $1550, that's $1050 toward interest . In the end, our borrower is saving $815 on every loan by borrowing with Progressive Payoff.

The best way to avoid the trap of payday loans is to call Progressive Payoff today! Mention this blog and we will drop the $25 processing fee from your first loan!