As with everything else in this world, the loan has slowly turned from a large-scale, massive endeavor to something relatively small and made for the everyday man – so long as you can practice some self-control in the process.
Payday loans are pretty much what they sound like: small, short loans designed to get you from one payday to the next. Say your job hasn’t gotten its paychecks out in time for you to pay your bills and you need a bit of extra cash to push away your debtors – a payday loan is a surefire way of doing so.
There are, unfortunately, some perils associated with the loan. Because the loan is supposed to take place over a very short period of time, sometimes only a few days in length, loan offices need to charge a lot of interest in order to get any money at all out of the loan. This is totally to their advantage, as the interest skyrockets in a very short time if the indebted fails to pay up by the maturation date. Individuals who borrowed on a few hundred dollars may face thousands of dollars of debt within a few weeks if they prove themselves irresponsible with their loans.
As such payday loans should generally be considered under only two conditions: a) you practice incredible financial discipline and never let a loan go past the maturation date, or b) you have absolutely no choice.
Here are some additional facts about payday loans that may prove helpful in deciding whether to get one or not:
– Payday loans are available both online and off, in brick-and-mortar institutions. Be careful when getting loans online, however, and use only accredited and well-known lenders.
– Loaners often require a post-dated check for the amount of the loan before they give you any money. That way you’re essentially assured of paying the loan off – so long, that is, as you’ve got enough money in the bank. If your check bounces you might be in trouble.
– Some payday loan companies do not require a credit check to grant payment, though they may require something else of you instead, often in the form of employment with a legitimate business. Poor credit, when credit is required, does not always preclude the possibility of a payday loan.
– Generally, companies will only grant one payday loan at a time. Once the loan has been repaid in full the payee can get another.
– payday loans come in relatively small increments, typically ranging from several hundred to $1,000 plus in amount. Customers going above and beyond these amounts should look to different types of loans, as they’ll probably receive much lower interest rates.