If you go around the Internet to look for quick cash, you'll soon find numerous payday loan companies. Right now, there are over 10,000 payday loan businesses in the US alone. If there's not one near you, you don't have to look hard to find one online.
On every payday loan site, you will find the advantages listed. A payday loan is quick. If you've tried the regular loan process before, you know that it can take days or weeks. You can get through the payday loan application process in less than 20 minutes. The money is transferred to your account within a day.
A payday loan is usually used to cover a temporary budget shortage. Some unexpected expense has come up and you need to cover it quick. If you use it that way, it's not a bad solution. What's important is that you're sure you'll be able to pay it off in time.
The payday loan companies usually say they are there to help you in financial need. Of course, they're not in the 'help' business, they are in the make money business. So how does a payday loan company make money? By charging interest on your loan. In the case of payday loans, pretty high interest.
Many local bureaucrats frown upon the payday loan business. Payday loan companies are usually profiled as 'predators', preying on the unsuspecting consumer. The interest rates of a payday loan can reach pretty high levels. If you find out you can't pay off the loan with your next paycheck, you will have to renew or extend your payday loan. This means that your interest effectively doubles. It can end up costing you about $ 50 interest to get $ 100. Pretty steep interest.
If you pay off your payday loan in time, it's a good way to get some quick cash to get you out of a tight spot. If you don't pay it off in time, the interest rate can go up very high, very fast. So be careful and think before you complete your payday loan application.
On every payday loan site, you will find the advantages listed. A payday loan is quick. If you've tried the regular loan process before, you know that it can take days or weeks. You can get through the payday loan application process in less than 20 minutes. The money is transferred to your account within a day.
A payday loan is usually used to cover a temporary budget shortage. Some unexpected expense has come up and you need to cover it quick. If you use it that way, it's not a bad solution. What's important is that you're sure you'll be able to pay it off in time.
The payday loan companies usually say they are there to help you in financial need. Of course, they're not in the 'help' business, they are in the make money business. So how does a payday loan company make money? By charging interest on your loan. In the case of payday loans, pretty high interest.
Many local bureaucrats frown upon the payday loan business. Payday loan companies are usually profiled as 'predators', preying on the unsuspecting consumer. The interest rates of a payday loan can reach pretty high levels. If you find out you can't pay off the loan with your next paycheck, you will have to renew or extend your payday loan. This means that your interest effectively doubles. It can end up costing you about $ 50 interest to get $ 100. Pretty steep interest.
If you pay off your payday loan in time, it's a good way to get some quick cash to get you out of a tight spot. If you don't pay it off in time, the interest rate can go up very high, very fast. So be careful and think before you complete your payday loan application.
About the Author:
Hugh writes about payday loans and other short term finance options. He also writes in Dutch about mini lening and minilening rente.
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