In Sacramento, if you borrow $255 from a payday lender, and pay it back on your next payday (14 days), it will cost you this: $300.00. (The amount borrowed, plus the finance fee of $45.) That's expensive, but it isn't too bad if you can pay it off within 2 weeks.

Here's where it becomes a problem:

If you pay it back in 5 months, which is the average length of a payday loan in Sacramento (Pew Charitable
Trust), it will cost you this: $750.00. (This is the finance fee, $45, multiplied by 10 payments, which is
every 2 weeks for 5 months, plus the original amount you borrowed.)

This is what happens to most people. It's hard to payoff the original loan of $300 in 2 weeks, and still have enough left over to pay your other monthly bills. So you pay off the loan, then immediately re-borrow it the same day, so that you can take care of your other needs: Gas, groceries, rent, you know, regular life stuff. So you're really just paying $90 per month to keep borrowing the same $300. The average borrower does this 10 times per year. This is how a $300 emergency loan becomes a $700 - $900 debt trap.

If this is you, we can help.

With Boomerang, after we pay off your verified payday loan, this is what you pay in total, in 4 equal payments, for 4 months.

$315 (A 5% flat rate instead of the 460% rate charged by every payday lender in Sacramento.)

$78.75 per month, for 4 months, and the loan is gone. Instead of paying $90 per month to your payday lender, for 5 months, and still not paying off the loan.

Boomerang saves you: $435

Let us help