Keep Your Tank Full Until Payday

It's interesting how the very industry so eager to "protect consumers" by proliferating the "Payday Loan APR Myth," citing exorbitant rates as their justification to pummel the Payday Loan industry, is charging higher rates for what amounts to the same thing.

The banking industry, notorious for lambasting the Payday Loan industry for charging high rates, has no problem charging consumers more than double PER OVERDRAFT than Payday loans typically cost for a $100 two-week payday loan.

Here's a realistic scenario which puts this into perspective.

Let's say you have 3 payments that you need to make before your next payday and your checking account has $15 in it. The amounts of the payments that you need to make are $10, $30, and $50. Here are two scenarios which realistically compare two possible solutions: Payday Loan vs Bank Overdraft Fees.

Payday Loan Scenario:

Solution: Take out a $100 Payday Loan

Cost: $15

Bank Overdraft Fees:

Solution: Go ahead and write all 3 checks and contend with the overdraft fees. When they hit the bank on the same day, according to most bank policies, the checks are reordered so that the largest one comes out first, immediately overdrafting your account.

Cost: $90-$105 (depending on how much your bank charges)

What will your choice be when finances get tight?

A high-res version of this image is attached for printing and distribution.