Posts Tagged ‘payday loans’
Let’s face it, in today’s society everyone wants everything and they want it fast. We are a materialistic culture. The truth is majority of people in this country live way above their means, driving cars they can barely afford just so they can look good to others I suppose. What is the true reason behind wanting more material things? Does it really make you feel like a better person at the root of it all, is it a form of self fulfillment or an endless need for a more self gratifying urgency? Credit cards make it affordable to buy things that we normally would not be able to buy. I personally do not have any credit cards, but I have on occasion taken out a payday loan to help me with a large purchase, which leads me to another subject entirely.
I have been reamed on several occasions for using a payday advance, yes I know it certainly doesn’t sound like the classiest thing, I am not bragging about my use of payday loans, but I’m always hearing or reading bad reviews about how expensive the fees and interest are. But how is it any different than getting a credit card really? Do you consider yourself to be a more sophisticated individual because you have a credit card, when in reality it really is no different than a pay day loan. If someone is going to badger me about taking out a payday loan, consider this, if you have a credit card with a limit of $5000 with an interest rate of 29% (which is very common) you will pay around $1500 of interest in a year. So please people stop your judgments on people who chose to borrow from a payday loan company, which is essentially no different than a credit card company. I have no credit cards and have personally taken out quite a few payday loans, and am in a better financial position than most of my friends who have high limit credit cards. I know it sounds ridiculous, but most people are living way above their means with limits of $15,000 dollars when all they can afford is $1000 dollars a month or less.
Like I said I am not bragging about my pay day loan use, but I have all my loans paid off now, and have actually built up my credit doing so. I know I am the exception to the rule, but if you can be responsible about borrowing money, you can actually improve your credit status. So think carefully when borrowing money, and please please please don’t think you are better than me just because you carry around a ton of credit card in your back pocket! Posers!
Credit cards, cash advances, pay day loans, etc… there are all essentially the same. Manage your money and keep track of your finances and you will be fine. If you are looking at using a check advance or a cash advance take your time and do your research, compare your findings and chose what is best for you.
Sometimes it happens that before the pay day comes, a completely run out of funds and becomes very difficult to perform daily activities. So if you’re short on cash, a company that offers cash advances may be able to help you.
So if you’re short on cash, a company that offers cash advances may be able to help you. Deferred deposit loans, advances are commonly known as “cash” or “payday loans”. Typically, a cash advance is a breakthrough in the short term that is due on your next payday that is why it is also known as “payday loan. Day by day is becoming more popular method for consumers to access cash faster.
As each loan is granted for a certain period of time, payday loans are also given for a period not exceeding one month, but in special circumstances, the time may change. Some people are under the misconception that the cash advances or payday loans are taken before your payday and should not be returned. But in reality are just loans and should be cleared out.
If you take a payday loan, whatever the time of repayment is, you have to pay a fixed rate, as it is a compulsion. If someone needs money fast and want to opt for cash advance, he / she must be employed and must have an active bank account. As this is the level of fees payable, which is usually set at 25% of the total amount of money borrowed. Another important fact to consider is that there is a limit to the amount you can borrow as payday loan. The loan amount is usually fixed to a maximum of $ 500 to $ 1,000. With such high fees associated with it, they are much too expensive to borrow.
Previously, it was very easy to get cash advance loans, but nowadays with the advancement in technology and financial aspects, one can easily get the cash advance. If someone needs a loan, then we can easily find a company of your choice as there are many that offer cash advance ready.
Now, one also has the option of getting online with less looting and hustles more efficiently. The process of obtaining cash advances has been simplified enough to get all requirements met without much difficulty. The days of waiting for a long period of time to obtain the loans are no longer there.
Payday loans, often referred to as cash advance loans, are amounts lent by specialized lenders to borrowers until the next pay day. Typically, payday loans are extended for amounts that are less than $1,000. The loan is extended to the borrower against the personal check of the borrower that is placed with the lender until the next pay day. The cost of carrying payday loans is very high as the risk of default is high, since generally borrowers who find themselves in a very difficult financial situation avail of such loans.
Why are Payday loans popular?
They are popular for a number of reasons such as:
- Credit checks are not required. The personal check that you make payable to the lender acts as security.
- Approval is quick. If all the necessary documents are submitted, your loan application maybe approved in minutes.
- The paperwork involved is simple. Generally one or two documents would suffice which explains the loan process and your obligations.
- The repayment process is without hassles. The check submitted as security is encashed on the next payday by the lender. You could extend the loan to subsequent paydays for a fee. However this is very expensive.
- Easy availability. Payday loans are particularly appropriate for emergency situations provided the amount required is small and one is willing to bear the high cost of the loan.
Drawbacks of payday loans:
- Such loans are prohibitively expensive. Lender fees can range from $15 to $25 per $100 borrowed. These fees are for a period of 14 days.
- Many borrowers, within a short time, find themselves in a debt trap. With each extension of the loan, the fees in total increase such that at the end of two, three or four extensions they equal the loan amount.
- Collection of outstanding loans is harsh. Considering the fact that this business is a high risk lending game, lenders wield the stick harshly on the slightest default.