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Payday loan fees may vary from one lender to the next, but these fees should always be carefully examined before you enter into a loan agreement. Although payday loans may seem appealing because they can be issued very quickly and with only minimal information required on the loan application, the fees associated with these loan can considerably increase the borrower's debt.
A payday loan is generally based on the applicant's income which helps to ensure the borrower will be able to repay the loan on the next payday. However, most lenders have additional fees associated with these loans. These fees are typically based on the amount which is borrowed. There may be application and processing fees as well as interest and penalties, which are applied if the borrower does not repay the loan in a timely manner.