Is A Payday Loan A Solution?
If you go around the Internet to look for quick cash, you'll soon find numerous payday loan companies. Right now, there are over 10,000 payday loan businesses in the US alone. If there's not one near you, you don't have to look hard to find one online.
You will find the advantages listed everywhere. A payday loan is quick first and foremost. You can get through the application process in less than 20 minutes, you can get the money within a day. That's quick cash.
A payday loan is usually used to cover a temporary budget shortage. Some unexpected expense has come up and you need to cover it quick. If you use it that way, it's not a bad solution. What's important is that you're sure you'll be able to pay it off in time.
The payday loan companies usually say they are there to help you in financial need. Of course, they're not in the 'help' business, they are in the make money business. So how does a payday loan company make money? By charging interest on your loan. In the case of payday loans, pretty high interest.
Recently, government bureaucrats have tried to win votes by uttering their disapproval of the payday loan business. They profile payday loan companies as evil predators, preying on the poor consumer. This is of course not the whole picture. But admittedly, payday loan interest rates can reach some pretty steep levels. The interest rates really kick in when you're forced to renew or extend your payday loan because you can't pay it off in time.
A payday loan can be a solution, but only if you're careful about the deadline. Make sure you pay it back in time, or the high rollover interest rates ramp up very fast and you may find yourself even deeper in the hole.
You will find the advantages listed everywhere. A payday loan is quick first and foremost. You can get through the application process in less than 20 minutes, you can get the money within a day. That's quick cash.
A payday loan is usually used to cover a temporary budget shortage. Some unexpected expense has come up and you need to cover it quick. If you use it that way, it's not a bad solution. What's important is that you're sure you'll be able to pay it off in time.
The payday loan companies usually say they are there to help you in financial need. Of course, they're not in the 'help' business, they are in the make money business. So how does a payday loan company make money? By charging interest on your loan. In the case of payday loans, pretty high interest.
Recently, government bureaucrats have tried to win votes by uttering their disapproval of the payday loan business. They profile payday loan companies as evil predators, preying on the poor consumer. This is of course not the whole picture. But admittedly, payday loan interest rates can reach some pretty steep levels. The interest rates really kick in when you're forced to renew or extend your payday loan because you can't pay it off in time.
A payday loan can be a solution, but only if you're careful about the deadline. Make sure you pay it back in time, or the high rollover interest rates ramp up very fast and you may find yourself even deeper in the hole.
About the Author:
Hugh writes about payday loans and other short term finance options. He also writes in Dutch about mini krediet rente and rente minilening.
posted by Debt Consolidation Loan at
4:28 AM
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