How Speedy Cash Payday Loans Work
A payday loan is a short-term, unsecured loan — typically $100–$500 — that must be repaid in full on your next payday (usually 14–30 days). Speedy Cash charges a flat fee per $100 borrowed. Here's the basic mechanics:
- You apply online or in-store and provide proof of income and a bank account
- Speedy Cash approves the loan and discloses the fee (e.g., $20 per $100 for a $500 loan = $100 in fees)
- You receive $500 in your account or as a check
- On your next payday (2 weeks), Speedy Cash debits $600 from your bank account
- If you cannot pay $600, you can rollover — paying another $100 fee — and still owe $500
The Debt Trap: How Rollover Works
The Consumer Financial Protection Bureau (CFPB) has documented that the majority of payday loan borrowers end up rolling over or reborrowing within 14 days. Here's what that looks like financially:
| Month | Rollover Fee Paid | Cumulative Fees | Still Owe |
|---|---|---|---|
| Initial loan | $100 | $100 | $500 |
| Rollover 1 | $100 | $200 | $500 |
| Rollover 2 | $100 | $300 | $500 |
| Rollover 3 | $100 | $400 | $500 |
| Rollover 4 | $100 | $500 | $500 |
| At 4 rollovers: you've paid $500 in fees and still owe the original $500 | |||
Speedy Cash Payday Loan Costs by State
State laws set the maximum fee lenders like Speedy Cash can charge. Here's how the fee cap affects real APR:
| State Law Fee Cap | Example: $300 Loan / 14 days | APR |
|---|---|---|
| $15 per $100 | $45 fee → pay $345 | 391% |
| $20 per $100 | $60 fee → pay $360 | 521% |
| $25 per $100 | $75 fee → pay $375 | 651% |
| $30 per $100 | $90 fee → pay $390 | 782% |
The Federal Employee Exception
Federal employees have one of the most valuable advantages in consumer lending — stable, guaranteed income with established payroll allotment infrastructure. This makes payday loan-level rates completely unnecessary. BMG Money's allotment loan eliminates the lump-sum repayment requirement, the rollover trap, and the 300–700% APR in one product.
Payday Loan vs. Allotment Loan: The Core Difference
A payday loan requires you to pay back everything at once — often $400–$600 — on a single date. If your finances are tight enough to need a payday loan, paying it back in full in 2 weeks is structurally difficult, which is exactly why rollovers are so common. An allotment loan breaks $3,000 into 52 biweekly payments of $76 — paid automatically before you see your paycheck. There's no due date to miss and no lump sum to find.