Payday Loans

Payday Loans 90 Days To Pay – How they Are Different From Extended Payment Plans?

Payday lending is a multi-billion dollar industry. Despite the high risks involved with pay day cash advances, the demand for the same is only increasing rapidly with time. the Federal Trade Commission, Consumer Welfare Associations and other organizations are running various awareness programs on why these loans do not make a wise financial decision on part of the borrowers. But, at the same time, since these loans are still legal in 34 states in the United States of America, lenders are running intensive marketing programs that make these loans sound easy, cheap and highly lucrative option for those borrowers who desperately want to borrow instant money. However, since even the competition among lenders is very high, lenders are coming up with new programs to get a competitive edge. Many of them are

now offering payday loans 90 days to pay programs. Following is a brief rundown on how such programs work.

Longer Repayment Period

As the term suggests, these types of payday loans allow you to repay the money you borrowed (plus interest and other applicable charges) within 90 days. It generally means you can make the repayment in installments over the next three pay days. However, just because your lender is offering you a 90-day repayment period, it does not necessarily mean that you are into an installment plan. Many lenders may require you to pay back in full on the set due date after ninety days while others may require you to pay a fixed amount of money per month over the next three months. In either case, you may be charged a hefty amount of money as pre-payment fees if you make the full repayment before the scheduled due date.

How Is It Different From Extended Payment Plans?

It is very important for you to keep in mind that extended payment plans (that allow you to pay back payday loans in installments over 3-4

months) are completely different from payday loans 90 days to pay programs. Following are some key points that you must keep in mind in this regard.

• Extended payment plans are not approved at the time of the loan. Such installment plans are approved only after you miss the initial due date and a make a request for it. On the other hand, 90-day payday loans approve a 90-day repayment period right at the time when the loan is issued to you.

• Extended payment plans are approved, generally, by only those payday loan companies that have membership to the Community Financial Services Association (CFSA). On the other hand, a payday lender that issues 90-days payday cash advances may not necessarily be a CFSA member.

• In case of extended payment plan, lenders allow you to repay in four equal installments over the next four pay days, but you are charged anything extra in terms of interest of other fees for this extended repayment period. But, in case of payday loans 90 days to pay programs, interest and other charges apply for the entire period. It means if the lender is charging $30 as interest for every $100 per month, you will be liable to pay a total interest of $90 (for three months) per $100 on the scheduled due date.

In fact, the real picture is much more horrible than that because payday lenders often charge around $30-$50 per $100 of loan issued for 14 days. If you calculate the total cost for 90 days, it can be somewhere around $180 to $300 for every $100 of loan, It means if you borrow $500 as part of payday loans 90 days to pay programs, you may have to repay somewhere around $1400 to $2000 at the scheduled due date after ninety days.

Always remember, the figures mentioned in advertisements will never show you the real picture. Therefore, you are strongly recommended to read the terms and conditions mentioned in the written loan contract thoroughly before you sign it. These days, even credit unions and other conventional banks are offering short=-term personal loans for 90 days. Though the approval for conventional loans may take a little longer time (5-7 days), the rates there are very low as compared to the rates charged by payday loans 90 days to pay programs. The rates in conventional loans can be as low as 8% per annum, which is almost negligible as compared to the 3-digit APR charged by payday loans.

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