Consumer Law

Billfloat: Payday Loans by Another Name

By Sam Glover

Payday lending is legalized loan-sharking. Actually, the Mob gives better interest rates. But sometimes people just need credit, and damn the interest rates.

Compared to a payday loan, Billfloat is a steal. Instead of paying, say, 360% interest, Billfloat may be only 150% (see Billfloat’s chart, at right).

For all the flack the credit card industry (rightly) gets, the highest interest rate you are likely to see from more credit cards is 30%. That’s a bargain compared to the payday lending industry. If you have to float a bill, use a credit card, not Billfloat.

(Thanks, Dan!)

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Full post as published by Caveat Emptor on August 31, 2010 (boomark / email).