Low Cost Payday Loans
While there is legislation trying to limit fees for a payday loan, you need to be careful and research who you choose.
U.S. Senator Dick Durbin (D-Ill.) introduced a federal bill that would cap interest rates, including all fees, at 36 percent, but this bill has not passed per this writing. For example, New Mexico has allowed payday lenders up to 417 percent annual interest rate charges. The rates vary by state, with the best being states like Ohio and Arizona.
The Military Lending Act was passed in 2007. This bill caps interest rates at 36 percent fortyps of loans made to military personnel and their dependents. Per the legislation, the lenders can't use post-dated checks and/or electronic debits.
1) If you can, try not to use payday loans.
2) Go to www.paydayloaninfo.org for rates by state. The site provides a tool for you to convert loan fees into the annual percentage rate