Payday Loans Reviews & Payday Advances
A payday loan is a short-term loan that you get to hold you over until your next payday. If you are paid every two weeks, many places will loan you the money until your next payday, unless it is less than a week away. At that time they will give you two paydays later for your due date. The rationale is that if you have an unexpected financial emergency, such as a car repair, or a family emergency, you might fall short on your bills for that month. Rather than get behind on your checking account, you can take out a small loan, meet your immediate needs, and then pay it off with your next pay check. Payday loan reviews are a good way to stay informed.
The problem that occurs is that many people can’t afford to pay off the cash advance on their next payday. What they then have to do is reborrow the money. When you reborrow the money you still have to pay the same fees as you did when you first borrowed it. These fees vary by state, but they usually represent an APR in the hundreds of percent. One payday advance company charges $80 to borrow $600 for two weeks. If you have to reborrow that money you will be paying $160 every month just in loan fees. This is a big problem, and why it’s rarely a good idea to get a payday loan.
The absolute only instance in which it makes sense to get a payday loan is if your overdraft charges at your bank are going to be more than the fee for the payday advance. If your bank charges a $30 bounced check fee, and you are only going to be short about $100, it makes sense to get a payday advance for $100 because the fee will likely be less than $30. This is especially true if you would be bouncing a lot of little checks, as these fees can add up in a hurry.
Payday Loans Reviews: Resources
The reason so many people turn to payday loans is that they are typically easy to qualify for. For a brief overview and payday loans reviews. check our guide. If you have a job and can prove your income you are pretty much qualified. It’s much easier to get money from a payday lender than from a family member or bank.
It’s also much more private than asking a family member for money. You can keep your financial problems to yourself and solve your own problems. Many banks don’t even loan money in such small amounts and they’ll probably suggest that you apply for their credit card. If you have bad credit this isn’t really an option, so many people decide to get a payday advance because it’s the easiest option. Get your fair share of payday loans reviews so you have an edge.
Category: Payday loans