http://www.paydazed.com/payday-cash-advance.html If I were a payday cash advance... en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 What would you do if you had control of the payday cash advance. If you were the lender, if you were the bank, would you do anything differently? Can you see what your changes would actually make? Can you see an alternative to today's high cost, high risk cash advance loans? Well, I know what I'd do. Paydazed rules the payday cash advance planet! If the payday cash advance were the sole property and prodigy of Paydazed, you can rest assured the first thing we'd do is lower the extension fees. Today's lenders charge the same for a roll-over as they did for the initial fee on the payday cash advance. Lowering fees to a rate similar to credit cards ( somewhere around 35% APR) would create a huge difference in the overall cost and cases of debt seen with todays payday advance. We'd make repayment a more leisurely, more time-considerate opportunity that can be easily handled by most any applicant. Thats what we'd do if we ruled the world - lower costs, lower rates, make everything super awesome! Bringing it back to reality So what would be the repercussions of lowering the costs of the payday cash advance? Today's lenders claim their risk is appropriate for the cost, but studies and comparison figures show a different picture: in 2002 in Colorado, one of the only states to closely regulate their payday cash advance providers, the average number of write offs on their payday loans came to about 3.2%, while the average APR came to about 400%. During that same time in the California, credit card companies wrote off about 3.0% of their debts while charging a regulated maximum APR of about 35%. This one comparison shows just how risk the payday cash advance - and the risk doesn't match the cost. However, if the huge profits and lender incentives weren't there, you'd better believe payday advance loans would be slower as well as few and far between. Sat, 26 Jul 2008 15:00:00 EDT