Watch Your Fees On Your Check Advance Payday Loans
With all the talk about check advance payday loans in the news and advertisements, it is no wonder so many people who find themselves in a financial pinch turn to these types of loans to survive until the next paycheck arrives. With all the talk, good and bad, there are some common sense questions that should be answered before a loan is attempted. Ignorance is not bliss when it comes to determining the total cost of a payday loan and whether or not it is the best option for a consumer.
Starting with the definition of a payday loan, understand it is just what the name implies, a short term loan, ranging from 1 day to 2 weeks that is granted at a very high interest rate or service fee. 400 percent interest rates are not unheard of with payday loans. Therefore, be prepared to pay plenty for any loan granted to you.
It would be advantageous to view your state’s laws and procedures for payday loans, since the loans are regulated differently, depending on where the borrower resides.
Generally speaking, payday loans can be best viewed as cash advances that carry a very high interest fee or surcharge. Some institutions hold on to a check that is then deposited when the next pay day arrives. Others can remove the borrowed funds from an account electronically. Or the borrower can simply collect the check back from the vendor and pay the amount in cash.
The unexpected mishap or accident can make these payday institutions vital to solving that rare problem that arises when something terrible occurs and there is no available cash to deal with it.
Consider if it would be cheaper to get a cash advance on a credit card or pay the extremely high fees attached to a pay day loan. In some cases the cheaper of the two is actually the pay day loan, since you can quickly pay off the debt with one payment, unlike credit cards with their revolving fees and charges.
Just as there are traps with credit cards, so too with payday loans. Revolving or roll over loans can put you in a financial hole you will not be able to crawl out of. Avoid the cycle of debt such easily obtainable loans can begin. Do not permit yourself to take the easy way out and agree to roll over your loan, merely paying the interest on your loan. Likewise, do not begin doing business with numerous payday loan establishments, robbing Peter to pay Paul, as the saying goes. Such would not be using the loans in a responsible way.
Not entirely sure how to get a payday loan ? Get the inside skinny on this simple process now in our cash advance guide.
categories: payday loans,personal loans,loans,finance
