Why an Emergency Payday Loan Might be a Bad Idea

Most everyone, at some point in their lives, will find themselves in need of cash fast. There are a variety of reasons why you might end up needing money quickly. Many people end up needing quick cash when their vehicle breaks down, or when they're facing an unexpected home related repair or bill they cannot afford to pay. These days, there are companies that offer payday loans for people with emergency financial needs. These companies promise to loan you the money you need quickly and with no credit check. It sounds good, sure, but the truth is that an emergency payday loan might be a bad idea.

Whether a payday loan company exists online or at a physical location, they all basically work in the same way. While there's no credit check, you will be asked for information regarding your identity and income. Some loan companies will ask you to provide proof of your income in the form of paycheck stubs or a letter from your employer. Others will call to verify that you work where you say you do and make what you say you make. Because the company wants to make sure you can pay the loan back, it's usually required that you earn at least $1,000 per month. You might also be asked for references, not only to confirm your ability to repay the loan but to provide an alternate way to reach you if you disappear without paying.

Speaking of paying, you will pay big with one of these loans. Fees for a loan can range from around $15 per hundred dollars borrowed to much, much more. Different companies charge different rates, but most all of them are pretty high. The longer you keep the loan out, the higher the charges go. It's not uncommon to borrow $100 but end up paying $500 or more before all is said and done. Or more. Many people who take out these types of loans pay much, much more in interest rates and fees than what they borrowed.

If you decide to take out an emergency payday loan, be very clear on the amount of money you'll be required to pay. Also, try to pay back the loan as fast as possible to avoid more expensive fees from being tacked on as time goes by. Make absolutely sure that you can afford to make the payments, because one thing you won't get from these companies is sympathy if you can't pay!

Copyright 2006 Jim Sterling - All Rights Reserved

Payday Loan News:
Group pushes misinformation about payday loan initiative - People's World

Group pushes misinformation about payday loan initiative
People's World
LOUIS - As this year's elections cycle kicks into overdrive, the Missouri ballot initiative to cap payday loan interest rates at 36 percent is getting a lot of attention from an unscrupulous, pro-industry organization. "Missourians for Equal Credit .

and more »
..

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 ...

Payday loans: A time and a place - Foster's Daily Democrat

Payday loans: A time and a place
Foster's Daily Democrat
John Lynch's recent veto of SB 160 which would reinstate the payday loan industry in New Hampshire strikes us as a bit odd. The main complaint of payday loan opponents is that the effective interest rates on these loans are usury.

..

Payday loans may outstrip credit cards EUR PwC
PwC warns mainstream lenders that customers are being increasingly drawn towards 'smaller, more agile loan providers' Payday lenders could overtake credit cards and become a mainstream method of borrowing, a report by one of the UK's leading accountancy firms has warned. PricewaterhouseCoopers (PwC) said that consumers unable to borrow from traditional lenders, including credit card companies ...

CashAdvance.com Presents Free Educational Kentucky Loan Process Resource - SBWire (press release)

CashAdvance.com Presents Free Educational Kentucky Loan Process Resource
SBWire (press release)
Los Angeles, CA -- (SBWIRE) -- 02/07/2012 -- The payday loan industry in Kentucky continues to grow and aid consumers who need help with their finances. CashAdvance.com is pleased to announce the launch of the Kentucky Loan Process page.

..

Instant money loans: Payday loan firms are ruining lives
And the payday loans industry, which is now worth 2EUR‰billion in the UK, is spending millions of pounds to woo young, working women who are feeling the pinch...

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 ...

Mo. senator calls for changes to payday loan laws
Missourians who take out payday loans could get more time to pay them off, under legislation put forth by a state senator...

Online Payday Loans In Spokane WA Are Easy to Get But Harder to Repay - Brunei News, Brunei Headlines from Brunei fm

Online Payday Loans In Spokane WA Are Easy to Get But Harder to Repay
Brunei News, Brunei Headlines from Brunei fm
Online payday loans in Spokane, WA are in demand now more than they were in recent past. Located in the Northwest, Spokane WA has also been adversely affected by the nation's economic decline. If you have surprisingly found yourself in want of .

..

3 Tips For Using Payday Loans
With payday loans now operating across 41 states, we tell you how to use them wisely and responsibly...

Backing for TV ban on payday loans - The Independent

Backing for TV ban on payday loans
The Independent
Almost as many people think payday loans should be barred from advertising on television as those who agree with the existing ban on cigarette ads. A survey by YouGov found 75 per cent of respondents want the expensive loans kept away from TV, .

and more »
..

Payday loan company targets pet owners - The Guardian

The Guardian
Payday loan company targets pet owners
The Guardian
Now it is pet owners struggling with unexpected vet bills who are being offered instant short-term loans with eye-watering interest rates. Petloan.co.uk is a new arrival to the fast-expanding payday loans sector, and claims to be "the UK's only .

..

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 ...

Six reasons why credit cards beat payday loans - Which?

The Guardian
Six reasons why credit cards beat payday loans
Which?
As the credit card suffers from a 'mid-life crisis' and payday loans threaten to enter the financial mainstream, Which? experts explain why the humble credit card has the edge over its upstart rival. A new report from PriceWaterhouseCoopers (PWC) shows .
Credit card usage falls but payday loans are on the riseCompare Pre Paid
Payday loans may outstrip credit cards EUR PwCThe Guardian
Credit card borrowing fades as payday loans riseBBC News
QCK -The Economic Voice -Finance Markets
all 37 news articles »
..

British Payday Lenders Are Under Fire For Promoting Plastic Surgery Loans - Business Insider

Business Insider
British Payday Lenders Are Under Fire For Promoting Plastic Surgery Loans
Business Insider
In the US, nonbanking services like payday lenders, pawn shops and debt collectors, have become a core part in the Consumer Financial Protection Bureau's mission to help consumers. Nearly 20 million Americans use payday loans, and many have allegedly .

and more »
..

PayDayCentral.net: Many Consumers Not Adequately Informed on Laws Relating to Payday Loans
ORLANDO, Fla., Feb. 3, 2012 /PRNewswire/ -- In response to growing consumer interest and demand, PayDayCentral.net has decided to provide information on a state-by-state basis for regulations that are ...

Technorati Tags: , ,