Temporary financial crisis strikes each one of us at some point or the other. Since Payday Loans offer quick solutions to tide over such situations, they are gaining rapid popularity. Recent studies indicate that the number of customers taking payday loans and payday lending companies has been increasing significantly.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
Why Take Payday Loans: Payday loans are emergency cash solutions, especially designed to meet last-minute cash crunch. You can use payday loans to avoid bouncing of checks, bank overdrafts, or to pay pending bills.
Who Can Get Payday Loans: Any adult (18 years) who is a US citizen, earns a steady income of not less than $1000 per month, and has a checking account in bank can get payday loans.
The disadvantages are: o You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400. o If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly. o Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable. o Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month's earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation.
However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
Why Take Payday Loans: Payday loans are emergency cash solutions, especially designed to meet last-minute cash crunch. You can use payday loans to avoid bouncing of checks, bank overdrafts, or to pay pending bills.
Who Can Get Payday Loans: Any adult (18 years) who is a US citizen, earns a steady income of not less than $1000 per month, and has a checking account in bank can get payday loans.
The disadvantages are: o You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400. o If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly. o Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable. o Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month's earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation.
However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
About the Author:
Unsecured debt consolidation Loan Helps in Managing Your Debts What is Credit Credit Card Consolidation?
