 |
A Payday Loan May Be Right
|
Title: Payday loans - examine your alternatives
Author: Fredric Johnson
Article:This type of loan seem so tempting; get your money now and pay themback at salary day. The interest is high, but whatever - you canafford $10 or $20.
In addition, the loan process is so simple:if you deliver your application, you got your money! A goldmineif you are short of money or not?
Let us go deeper into the disadvantages of payday loans:
1.Theinterest is huge. $10-$20 per $100 borrowed. Of course, this isaffordable as a one-time fee, but if you use the service once, then you are most likely to repeat this action,which bring us to the next point.
2.If you are short of moneythis month, then you are most likely short of money next month(because you have spent some of your salary in advance).
A payday loan that cost $20 per $100 borrowed, taken 10 daysbefore payday have a yearly interest rate of $730. You mightthink: who cares, I can afford $20. Maybe you can, but if youare likely to repeat the action then your annual cost for $100per month is $240. You do not need this service if you canafford this amount.
Theory, you will say. I need money now. Do not panic; look atthe alternatives to payday loans:
1.If you are due to payments, call your creditors and ask for adelay to your payday. Most creditors agree to this and theinterests, if any, are usual much cheaper than the payday loanfee.
2.Use your credit card if you have one and pay back beforedue date. Most credit cards do not have any interest if you arepaying back within a month and the cost of withdrawal is lowerthan $20 per $100.
3.Ask your local bank for a loan of the same amount. You will get much lowerinterest and, if you want, a repay plan.
4.Ask for a loan quoteon an Internet bank, the time before you get the money might be1-2 days longer than with your local bank.
5.Ask your employeefor an advance payment.
When should you consider a payday loan? If you really need themoney and all of the above suggestions are out of the question,then the service might be your solution. However, try to let itbe a one-timer.
About the author:Fredric Johnson is a contribution writer for
payday loan to online-loan-pro.com home