Payday loan dilemma

You are here: Index - Articles - Payday loan dilemma

Payday loan dilemma

Okay, let’s say that I need money quickly because of unexpected expenses, say for example, my salary was delayed and I have lots of bills to pay, and I could not find any quick cash or borrow any from my friends. One option that I have is a payday loan. I can get a small amount of money just enough to cover my bills and some other things that I might need, and my monthly expenses are covered for that month. Problem solved. I don’t have to worry about my bills or credit card debts that I have because of payday loans. But what’s a payday loan? Some individuals call it a cash advance loan or check advance loan. Still, some call it post-dated check loan. But however you look at payday loans, it’s a small amount of money of about $50 to $1500 that you borrow on payday loan companies with VERY HIGH interest rates that you have to pay back in a relatively shorter period of time. Does that still sound enticing? Maybe not.

Who would want to borrow money for a small amount of cash that has a very high interest rate on a short payment period? This is just one disadvantage of payday loans. These payday loan companies are thought of as preying on the low-income individuals who has financial problems.

What if you borrowed money from these companies and you could not pay for that right away because your next salary just about covered your monthly expenses again, and you don’t have enough to settle your payday loans. With its high interest rate, you might as well end up paying for the interest rate with the same amount of cash you borrowed in the first place, your debt bloating to almost twice what you borrowed! And if you cannot pay the first month or the second or the third, think of how much the interest would have been by then.

Payday loans have its benefits though. If you have no other choice because you have reached the limits of your credit card or you’re in so much debt already that you cannot borrow cash from any other loan companies then payday loans might be an option for you. Payday loan companies don’t check your credit history so it is hassle free, and you can apply in person, over the phone or through the internet. The processing of your payday loan has a much shorter period of time, probably like 20 minutes, and you will have the money deposited to your bank account in about 24 hours. Convenient, isn’t it?

There are a lot of payday loan companies here in the U.S., and Money Mart is one of the popular ones. They have branches all over the U.S., Canada and U.K. so one need not go look for it in other places as it is most conveniently situated to those who need payday loans, and they offer extended operating hours so anybody who needs a payday loan can get a “quick cash” anytime. You can easily apply on-line for a payday loan.

Now you now the advantages and disadvantages of payday loans, the option of it as the last recourse is still your choice. One advice though if you go for this is do pay it quickly so paying for the high interest rate would not be a problem.

Back to payday loan article index.

No part of this site may be reproduced without our written permission.