More Talk About Payday Loans vs. Overdraft in U.S.

An article that appeared in the Houston Chronicle over the weekend points out that many Americans don't understand the financial benefits of choosing a payday loan instead of bank overdraft for small amounts of credit:

Debt concepts a challenge for many in U.S.:

"According to a financial literacy survey by the Center for Economic and Entrepreneurial Literacy, which advocates personal finance education, just a quarter of adults knew that overdrawing their checking account (bouncing a check) for a quick $100 was more expensive than a payday loan, credit card advance or emergency wire transfer. More than half said they thought a payday loan would be pricier."

If you are considering between a payday loan, bank overdraft or a cash advance on your credit card, be sure to get the full fee schedule from both your bank and your payday loan provider in order to make an informed decision. It takes a little extra time to find all of the fees, especially at the bank, but it is the only way that you can be sure you are making the most of the credit options that are available.

Here are some other posts about the costs associated with various short-term credit options:
Bank Fees Have Ohioans "longing for a payday loan"
Mainstream Lenders Cranking Up Fees
Will Credit Unions Provide a Payday Loan Alternative?
Bank Fees Make Payday Lenders Look Like a Bargain