The Truth About Payday Loans
We've all had it. Some unexpected expense comes up, like a broken washer or a broken car, and you have no idea where to get the money to fix the problem. You can choose to put it on your credit card, if it's not maxed out already. This would mean you pay it off over time, with added interest. You can also consider a payday loan.
A payday loan is a small loan, typically in the range of $ 100 to $ 500. The loan carries a high interest percentage, especially when payment is overdue. Like every other loan, the payday loan has advantages and disadvantages. We'll look at that in this article.
If you're short on cash a payday loan is one of the quickest and easiest ways to get it. It's a better way to get money than having to ask your friends or relatives for money. Asking friends or relatives for money can put them in an awkward position, a payday loan is discreet.
If you have bad credit, or you're a little worried about your credit score, the payday loan offers another advantage. You don't have to go through the usual credit check. This speeds up the process immensely, making it possible to have the money within a day.
This is what makes a payday loan a quick fix for your short term credit problems. However, you have to be sure that you can pay it back within the set time limit. Most of the time, the deadline is 3-4 weeks. If you can't pay it back then, you're looking at some huge interest costs.
Payday loan companies give you the option of extending your payday loan. This is also known as a 'roll-over'. The problem with rolling over, is that the interest rate can reach high into the double digits. Don't let this happen to you and pay attention to the date that the loan should be paid off.
A payday loan is a small loan, typically in the range of $ 100 to $ 500. The loan carries a high interest percentage, especially when payment is overdue. Like every other loan, the payday loan has advantages and disadvantages. We'll look at that in this article.
If you're short on cash a payday loan is one of the quickest and easiest ways to get it. It's a better way to get money than having to ask your friends or relatives for money. Asking friends or relatives for money can put them in an awkward position, a payday loan is discreet.
If you have bad credit, or you're a little worried about your credit score, the payday loan offers another advantage. You don't have to go through the usual credit check. This speeds up the process immensely, making it possible to have the money within a day.
This is what makes a payday loan a quick fix for your short term credit problems. However, you have to be sure that you can pay it back within the set time limit. Most of the time, the deadline is 3-4 weeks. If you can't pay it back then, you're looking at some huge interest costs.
Payday loan companies give you the option of extending your payday loan. This is also known as a 'roll-over'. The problem with rolling over, is that the interest rate can reach high into the double digits. Don't let this happen to you and pay attention to the date that the loan should be paid off.
About the Author:
Gerald writes about payday loans and other short term finance options. He also writes in Dutch about mini lening rente and minilening.
posted by Credit Counseling at
6:45 AM
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