Pros and Cons of Payday Loans
If you need money fast, then you might be considering a payday loan. Payday loans are a relatively new way to get quick cash and can be a saving grace for people who don't have any other means of getting the emergency funds they need. Let's say your car breaks down and you have no savings to pay for repairs. In this case, one of these loans could provide you with the money you need to get your car back on the road.
You may also hear these loans referred to as cash advance loans. There are many different establishments popping up all over the place, both online and at physical locations. One good thing about this type of loan is that there is no credit check. That means if you have bad credit, you can still get a loan even when a bank, credit union or other financial establishment refuses to give you one. There are some things that these companies normally check, however. Because they want to make sure you will be able to repay them, your income will probably be verified. You can provide check stubs, or have your employer write a letter stating how much you make each month.
Another thing these companies may need is a few references. You can often use friends and family members as references. Sometimes they call them before giving your loan, other times they only call if they are having trouble collecting payment and cannot reach you. Which brings us to one of the drawbacks of these loans -- paying them back!
Let's say you take out a loan that requires an initial $20 fee for every $100 borrowed. If you borrowed $500, you'd end up paying a total of $600 when your loan came due, usually in one week. But suppose you didn't have $600 in one week? You can often choose to renew the loan and pay the interest charges only. The thing is, the longer the loan remains unpaid, the higher the interest charges go. It's not uncommon for the annual percentage rate on one of these loans to go as high as 600 percent!
All in all, payday loans are helpful if you have no other way to obtain the cash you need. The smartest thing you can do if you decide to get one of these loans is to read all the fine print, understand all the fees you'll be liable for, and pay the loan back as quickly as you possibly can to avoid extravagant interest charges.
Copyright 2006 Jim Sterling - All Rights Reserved
Help Keep Those New Year's Resolutions with an Online Payday Loan from CashWire - San Francisco Chronicle (press release)
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KC group creates alternative to payday loans - STLtoday.com
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New Payday Loans Myspace Strategy Announced By USAPaydayForever.com - PR Web (press release)
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Payday Lending Is Focus of Consumer Bureau Alabama Field Hearing - Bloomberg
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Consumer Bureau: Will Take Immediate Steps To End Illegal Payday Loan Practices The federal government will be giving payday loans "much more attention," Richard Cordray, head of the new Consumer Financial Protection Bureau, said Thursday during the agency's first field hearing... | ||
Announcing the Launch of Online Payday Loans EUR A Safety Net Guide to Loans and Borrowing Payday loans online is a rapidly expanding market in the UK. The launch of Online Payday Loans aims to keep the public better informed of the ins and outs of every lender and every type of deal. OPL will also be offering exclusive reductions.Bath (PRWEB UK) 24 January 2012 With so much attention focused on short-term borrowing, there has been so many unanswered questions on the whole concept ... | ||
Welsh Assembly - BBC News
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Non-Profit Offers KC Residents Alternative to Payday Loans A Kansas City nonprofit is offering an alternative to the payday loan industry for people who need small loans. The Fair Community Credit group is a consortium of churches, bankers, lawyers and nonprofit agencies that plan to offer small loans... | ||
Loans 'sucking money' from poor Companies that offer short-term loans at high interest rates are accused of "sucking money" out of poor communities by Welsh assembly members... | ||
Payday Loans Satisfy Growing Consumer Demand in United Kingdom, New Survey Shows Survey results just released in the United Kingdom show the critical role payday loans are playing in the lives of consumers there. Findings indicate that, just as they do in the US, payday loans are helping borrowers in Great Britain weather stormy financial times. CashKingPaydayLoans.com provides consumers with information on online payday loans. The results also show that payday loans are in ... | ||
Consumer watchdog targets payday loans Payday loans. Everybody's doing it, even banks. So much so that the new consumer watchdog wants to take a close look at them to make sure they comply with federal law... | ||
CFPB Plans Review of Payday Loan Practices to Help with Debt Relief - Debtmerica Relief (blog)
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New Payday Loans Myspace Strategy Announced By USAPaydayForever.com USAPaydayForever.com Has Announced A New Myspace Strategy For Their Online Payday Loans Services. This Is Part Of Their Social Media Campaign(PRWEB) January 26, 2012 Recently, USAPaydayForever.com has announced that they are continuously extending their payday loans promotional campaign with social media strategies. The most recent of these strategies to be reported is their Myspace social media ... |
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