Are you in a bit of a jam financially, and need a little extra help with money to make it to your next payday? Have you considered a payday loan but don’t know if it’s right for you? We’ve compiled a list of pros and cons regarding this popular service that will give you all the information you need to make the best decision possible.
If you find yourself struggling to make it to your next paycheck, you are definitely not alone. In fact, nearly 80% of Americans have claimed that because they live paycheck to paycheck, they find that they are in need of money to tide them over until they get paid again. These are, often times, referred to as “quick cash” loans, and they’re not as difficult to obtain as one might believe.
These payday lenders and loans vary from company to company but, in general, the majority of them are very short term. When you borrow money from these lenders, you must pay back the amount you borrowed, plus any added interest, either all in one sum, or over the course of a few months. These are known as installment loans.
The one big benefit of expert payday loans is instant cash. More often than not, and depending on a few stipulations, you’ll receive instant approval and have the cash available to you in less than 24 hours. This can be a tremendous relief for those individuals who find themselves in a bind, financially.
Generally speaking, due to the liberal approval terms for many lenders, most applicants who apply for an advance are almost guaranteed to be approved. This is good for anyone who is in desperate need for cash but might suffer from a poor credit history. You can also request a range of amounts, but that does depend on your credit, how much you make, etc. However, if you’re lucky, some payday loans can reach the amount of $5,000.
Does this all sound too good to be true? Well, it might be. Should you have a less than ideal credit score, you could possibly be considered a high-risk borrower. This means that the lender has the right to charge you phenomenal rates and interest fees. These rates can be prohibitive for people who wish to borrow money, especially when there’s a high chance you’ll have to pay back double what the original loan is.
The biggest issue you’ll see when taking out any payday loans is almost always having to take out another one. When you look at the high interest fees versus how much money will be taken out of your check to pay off the balance, you find yourself, once again, living paycheck to paycheck. You’ll see that you need financial help again, and will even sometimes resort to going to a different lender to take out more cash, leaving you the burden of having to pay off more than one lender.
The moral of the story is this: if you really need the money, consider all your options first. If you absolutely need a payday loan, don’t take out more than is necessary. This means not taking a $500 loan if you only need $200. The less you take, the less you have to pay back in the long run.