In these difficult times, payday loans can be tremendously helpful to people who cannot meet their short term expenses. Moreover, they offer a reasonable and practical solution for serious emergencies. And perhaps, most important of all, they are easier to get than most other types of loans.
Despite these benefits however, payday loans do have their flaws and dangers. For starters, people who rely too much on them can easily end up accumulating a large amount of debt. Likewise, payday loans tend to have higher interest rates than most other types of loans, so they are more expensive to pay back.
This article will help you sort out these issues, and to provide you with some idea on what payday loans have to offer, how they can benefit you and how they can turn into a financial liability.
One of the best things about payday loans is the convenience. You can get around $500 to $1000 in cash within 24 hours of your loan application. In fact, the application process is what’s great about payday loans. No matter how bad your credit history may be, you are still qualified to get a payday loan. The only requirement lenders will ask for is proof that you have a job or a source of income. Once that has been confirmed, you will get the loan that you want.
Aside from the lenient requirements, it’s also worth pointing out that payday loans are ideal for emergencies, and not just when you run out of funds. The fact that you can get payday loans approved within 24 hours means that you can use it to pay for medical emergencies or accidents.
It’s also worth mentioning that the paperwork for payday loans is relatively easy to do. You will be required to provide your name, address, your bank account and, of course, your present source of income or job details. After you have provided all the necessary information, you can expect the loan to be deposited into your bank account within 24 hours.
When it comes to loans, there’s always a catch, and payday loans are no exception. The biggest disadvantage of payday loans is that they only come in small amounts. At best, you can only get $1,000 for a single loan, and this is not nearly enough to cover serious medical emergencies or accidents.
Another problem is that payday loans must be paid back quickly. In most cases, you will only get around two weeks to pay your payday loan. Failure to do so can adversely affect your credit rating. And although you have the option to ask for an extension, it will cost you a much larger amount than what you originally owed to the lender.
And finally, you have to remember that payday loans have high interest rates. In fact, it’s not an exaggeration to say that some loans will require an entire paycheck to pay back. So if you are going to opt for a payday loan, you need to make sure that you can pay it back quickly, otherwise it can become a serious problem.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk