Payday loan can be solution in some hard financial situations, but if you ever thought to take payday loan, it would be wise to reconsider you all options firstly.
These loans will allow you landing of money in short amount of time and you will be required to pay them when you receive your next paycheck. They can be very convenient, with a quick access and time of approval, but there lies the danger, because everything can turn into financial catastrophe.
Their fees are extremely high and it will charge you on every $100 fee of $22 on monthly level, but if you borrowed that money on credit card, your fee would be %18 annually, which means five dollars less and on annual level. This why you should plan your every financial step, because it can cost you greatly.
Short payday loan
If you try to convert your loan into APR, interest rates would be around 1,000%, this could be a really helpful warning: how this loan can be extremely dangerous. On the other hand, APRs can seem a bit unimportant, because even a money you borrowed for short period of time, can have huge APR fee.
This loan shouldn’t ever become your regular mean of payment. If you use them on monthly basis, then you are in serious financial problem and they will make things even worse. You should try to balance your budget and lower your expenses. This money is easy to get, but what happens next month when you find yourself in debt collectors hands.
You have to be 100% sure that you will be able to pay this loan when the time comes, others wise don’t bother getting one. It doesn’t matter how desperately you need the cash, you will get in a circle, where is hard to find the way out. Try to find some other solution instead of becoming a slave of these companies that will pray on your financial misery.
Long payday loan
Large number of these companies will let you borrow the money on longer periods of time, some of them will give you three months. This all may seem appealing, because you don’t have to return the money all in once when the paycheck comes. But remember, the longer the time, the bigger the interests. Luckily, there is a limit, your interest can’t be bigger than double the amount you got. But you shouldn’t relay too much on this, if you really need this kind of loan, always plan ahead how are you going to return it.
If you repaid your loan within required time, the landing company will know you are reliable costumer and they will try to attract you one again, because of the fact they live on you and only waiting a moment of your mistake to impose you bigger fees and interests. If they see that you are returning a money regularly, they will try to offer you a larger amount, naturally with bigger fees. Even though this offer may seem appealing, it would be wise to refuse this, even if you get some kind of a discount.
What you also should reconsider, it that these loans can damage your credit history, even if you pay them within required time. They may affect you to get a mortgage, because they will present you in a bad light and someone who isn’t reliable.