Published by admin on 23 Jun 2009
Analysis of Bank Charges vs Payday Loan Charges
BANK CHARGES VS PAYDAY LOAN CHARGES
Write a check for 30.00, 40.00, 60.00, 70.00, and 100.00 and overdraw your account.
The total you have overdrawn your account is 300.00.
With a payday loan it will cost you 45.00 to avoid the overdraft charges. (Louisiana)
The bank will charge you 35.00 a check for the five checks, which is a total of 175.00.
If you are overdrawn for 10 days you will be charged 5.00 a day for the 10 days you are overdrawn, which comes to a total of 50.00.
For 300.00 worth of checks you have been charged a total of 225.00.
If your checks are returned and each person that you have written a check to charges you 25.00 it will cost you another 125.00.
Now that 300.00 worth of checks has just cost you 350.00.
COST: AMOUNT COST DAYS A P Y RATE
PAYDAY: $300.00 $45.00 14 391.07% 13.043%
BANK $300.00 $225.00 14 1,955.36% 42.857%
W/LATE $300.00 $350.00 14 3,041.67% 53.85%
Submission from: Gary Caballero, Money Now, Cut-Off, LA Former banker and Payday Loan Owner. Thanks, Gary for your submission to the blog and to the IvyTek News.
