Are payday loans outrageously expensive?
No. A typical payday loan can be less expensive than many other alternatives.* • $100 payday advance with a $15 fee = 391% APR • $100 credit card balance with a $37 late fee = 965% APR • $100 utility bill with $46 late/reconnect fees = 1,203% ARP • $100 bounced check with $54 NSF/merchant fees = 1,409% APR * Other costlier alternatives to a two week payday advance were obtained from bankrate.com. APR was calculated by taking the fee dividing it by the 14 day loan period and then multiplying it by 365 days.
