Pros and Cons of Payday Loans
If you need money fast, then you might be considering a payday loan. Payday loans are a relatively new way to get quick cash and can be a saving grace for people who don't have any other means of getting the emergency funds they need. Let's say your car breaks down and you have no savings to pay for repairs. In this case, one of these loans could provide you with the money you need to get your car back on the road.
You may also hear these loans referred to as cash advance loans. There are many different establishments popping up all over the place, both online and at physical locations. One good thing about this type of loan is that there is no credit check. That means if you have bad credit, you can still get a loan even when a bank, credit union or other financial establishment refuses to give you one. There are some things that these companies normally check, however. Because they want to make sure you will be able to repay them, your income will probably be verified. You can provide check stubs, or have your employer write a letter stating how much you make each month.
Another thing these companies may need is a few references. You can often use friends and family members as references. Sometimes they call them before giving your loan, other times they only call if they are having trouble collecting payment and cannot reach you. Which brings us to one of the drawbacks of these loans -- paying them back!
Let's say you take out a loan that requires an initial $20 fee for every $100 borrowed. If you borrowed $500, you'd end up paying a total of $600 when your loan came due, usually in one week. But suppose you didn't have $600 in one week? You can often choose to renew the loan and pay the interest charges only. The thing is, the longer the loan remains unpaid, the higher the interest charges go. It's not uncommon for the annual percentage rate on one of these loans to go as high as 600 percent!
All in all, payday loans are helpful if you have no other way to obtain the cash you need. The smartest thing you can do if you decide to get one of these loans is to read all the fine print, understand all the fees you'll be liable for, and pay the loan back as quickly as you possibly can to avoid extravagant interest charges.
Copyright 2006 Jim Sterling - All Rights Reserved
Payday Loan News:
| Is it against the law to have more than two payday loans . I have two payday loans with two different loan offices. Is this against the law? And can I place a payday loan on my bill consolidation plan? Related BlogsBill... | ||
Payday Loans Tackle your various financial needs - BigNews.biz (press release)
| ||
A Consumer Bill Gives Exemption on Payday Loans (New York Times) Senator Bob Corker wants a proposed bank agency to be more lenient toward nonbank companies, but some advocates say that would hurt consumers... | ||
Proposed Bill Would Restrict Payday Loans (KREX-TV Grand Junction) Denver, Colo. In Denver Monday, the House Judiciary Committee is hearing a bill that would put a restriction on payday lending. The bill would ask lawmakers to let Colorado voters decide if a 36% interest rate limit is good for state residents... | ||
Bill targets payday lending loophole (Finance and Commerce) Ron Elwood knows what its like to tilt at windmills. And for the third straight year, Elwood, an attorney for the Legal Services Advocacy Project in St. Paul, is tilting at a very large, well-funded windmill known as the payday loan industry... | ||
Payday lenders: loan sharks or endangered species? (FOX 31 Denver) DENVER - A controversial proposal to cap the interest rates that can be applied to short-term or "payday" loans is still alive after a five-hour hearing at the State Capitol... | ||
Payday Loan Blamed For Ruining Man's Finances - Today's TMJ4
| ||
Getting Fast Payday Loans is Not Difficult Nowadays | Good Ezines Getting Fast Payday Loans is Not Difficult Nowadays. In the present times it is not at all difficult to arrange for funds taking the help of the leading fast pay day loan centers. There are several pay day loan centers and they are ... | ||
Payday Loans Go Mainstream As Trust in Banks Diminishes | Cision Wire Leading payday loans broker Paydaybank.co.uk has today reported a 25% rise in loan applications via its website www.paydaybank.co.uk in the three months since the Supreme Court ruling found in favour of the banks in the OFT case ... | ||
Payday lenders giving advances on unemployment checks - Los Angeles Times
|
Technorati Tags: payday loans, Pros and Cons of Payday Loans, Payday Loan
- Payday Loan
- Bad Credit Payday Loan
- Best Payday Loans
- Check Cashing Loans
- Emergency Payday Loan
- Faxless Payday Loan
- Instant Payday Loan
- Loans Till Payday
- Low Interest Payday Loan
- Military Payday Loan
- One hour Payday Loan
- Online pay day Loans
- Pay Day Loans chicago
- Payday Advance Loan
- Payday Cash Loan
- Payday Loan Companies
- Payday Loan Rates
- Payday Loan Service
- Same Day Payday Loan
- Social Bookmark This
- Sitemap
- Resources
- Add URL