Anyone can get a Payday loan, if you meet the criteria! Do you need instant, fast, cash, same-day, pay-day and unsecured emergency loans? A Payday loan is a short-term loan usually repaid on the next payday (two to four weeks). It generally carries a higher interest rate. If you cannot repay the entire amount, you will accumulate late fees and make the original loan amount double or triple.
Sometimes the most responsible person needs emergency cash! You may be the kind of person who pays your bills on time, have a good job and something just happens. Stuff happens and you can plan and have savings, but you need more cash for something that just happens. A medical expense or car repair sometimes can’t wait! If this happens, you can apply online for a loan. Fast convenient cash when you need it. Normally, borrowing money from a bank takes time because a banker needs to approve the loan. It requires a relationship and time. Payday loans are fast because the application process is reduced to residency requirements, job, legal age and a bank account. Far simpler than a traditional loan.
Payday loans are much faster than traditional loans , but they are more expensive too. When you take out a Payday loan, you incur fees. If you are unable to repay the loan on the next payday, you will incur additional fees. The fees for taking out the loan can be as much as 400%! If you are late, the additional fees can be as much higher. Payday loans are much more expensive than traditional loans such as credit cards or other consumer loans. A standard credit card interest rate ranges from 12-22% APR versus a Payday loan. Obviously, it is very expensive to borrow money using Payday loans and you should use it only when you exhausted all other means.
There are alternatives to Payday loans! What can you do to avoid Payday loans?
- Maintain 3-6 months of expenses in an emergency savings account.
- Use your credit card to pay the expense or take a cash advance against your credit card.
- Talk to your creditors and negotiate a payment plan.
- Ask your employer for an advance on your pay.
- Borrow from a relative, friend or overdraft protection.
- Ask for more time to pay your bill.
Payday loans are always an option, but use only when it is a true emergency and you exhausted everything else.
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