Why Would A Payday Loan Not Be A Good Idea?

Why Would A Payday Loan Not Be A Good Idea?

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by Jamie Wilcox

You may be a good candidate for a payday advance if you have no cash available but you have an immediate need for cash.

Basically let’s assume you have spent all your money but your next payday is not for a several more days. If you need less then $500 and sometime up to $1,000 now a payday advance loan may be an option to consider.

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A payday loan is not always the best option when trying to get needed funds. However there may be times when you need immediate cash and an advance payday loan is the best option for you at that time. For most people these types of loans are easy to obtain. Some may say these loans are only for people with bad credit ratings.

So remember these types of loans are not perfect. You need to really look at your situation and learn the details of the agreement before making a final decision.

If you have three checks that bounced in your checking account for a total amount of $100 the bank would likely charge you around $30 per incident. If you borrowed $100 from a payday advance company you would probably pay around $15 in fees. So the payday loan company may save you money in that situation.

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If you look at it from that perspective a payday loan would be a better option then bouncing those four checks.

If you go with a payday advance a big thing to avoid is the never ending debt cycle trap. That is where before each payday you have to borrow more to pay off the last amount borrowed.

If a payday loan looks like the best thing for you situation make sure to compare all your options before making a final decision.

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