Everything you need to know about payday loans
I think we all have done at least one thing in our lives without first putting a lot of thought into it. These things usually result in a problem down the road or a regret on our part. More often than not, the reason we do these things is to just get it over with. It is something that we have been dreading or are embarrassed about. The thought of taking a payday loan is no different. For some people, a payday loan is not at all embarrassing, but for some, it could be an embarrassment. There honestly is nothing to be embarrassed about in a payday loan, it is a respectable way to take care of an unforseen predicament without having to burden a family member with lending money. As long as you do your homework and study up on the payday loan company, the loan process from completing the application to repaying the money should be a relatively painless process.
Don’t run out and get a payday loan just because there is a huge sale at the local hardware store and you really, really want a new snowblower for your vacation home in Florida. Payday loans are designed to aid people in real need that are able to use their upcoming paycheck to get caught up financially as well as pay back the loan. Payday loans, when broken down, are actually very expensive. you don’t feel the punch as bad because you have to pay the money back in a short period of time. The fees for loans can range from $15-$50, depending on the amount borrowed, state regulations, and loan length. When broken down into annual interest rates, these fees could equal or exceed 300%!
The loans are for short term purposes and usually small amounts. The loans normally range from $100-$1000 and can be secured with only a post-dated check. The average term for the loans is two weeks, although some loan companies will allow you to extend the life of your loan for an extra fee. Those fees can range from the same as the original fee to more than double the original loan fee. Again, when in a pinch, the $15-$30 fee may seem worth it, but when calculated out, could cost you more than you would imagine.
There is no collateral necessary for payday loans. The only thing needed is an active checking account and a steady job. Usually these can be verified with a paycheck stub and a call to your bank. These types of loans are normally approved in a very short period of time, sometimes less than one hour. Keep in mind, with all of its perks, you have to be careful of the payday loan.
If at any time, you require a payday loan, please shop around and make sure that you are getting the loan from a reputable company. Preferrably one that has been in business for quite some time. Check online and do research. Call the corporate office and get information. Ask friends and family if they have ever had a loan from this company. Over all, you just want to make sure that you are not giving your bank information to someone who is going to access your accounts and rob you blind or steal your identity.