There is no denying it; we are
living during some rough economic times. Unfortunately it appears there is no
relief in the immediate future and for some people things will get worse before
they get better. When you factor in the skyrocketing cost of living, rising
number of newly unemployed and lenders bracing for record losses you have the
perfect recipe for crippling financial situations for many families. What
happens when the paycheck that once lasted until the next no longer makes the
stretch? With limited resources and no safety net many people are turning to
payday loans to help them in an emergency. Do these loans really provide relief
or just get you further in debt?
Payday loans (sometimes referred as
cash advance loans) are a small, short-term loan that is intended to cover a
borrower's expenses until his or her next payday. The length of the loan is
generally no longer than two weeks with the borrower making arrangement by
either writing a post dated check or authorizing an automatic withdrawal from
their bank account on their next payday. Up until this point everything seems
on the up and up regarding this type of loan, right? There are some things to
consider before you accept this type of cash assistance:
* Consider the fees. Payday loans
can get you out of a tight spot in the event of an emergency, but you will not
get this assistance for free. You can expect to pay anywhere from $10-$40 per
every hundred dollars you borrow. All payday lenders have different contract
terms so the payday loan length and dollar amount can vary widely, however it
is agreed that payday loan APRs are very, very high when compared to other
APRs. Some lenders "allow" you to rollover the repayment essentially
extending the loan and you can get caught in a cycle of fees and increasing
debt.
* Consider your credit. This type of
loan will appear on your credit report. Even if you borrow the money and pay it
back without extensions or being past due, any future lenders who see that you
have been in such dire situations to need to use this type of loan will
consider you a higher risk for repaying their money.
* Consider the source. To find a
payday loan, you can physically go to a business offering this type of loan or
apply online. If you are applying online be sure to research the company you
are dealing with to ensure it is legitimate as you will be required to send
them sensitive information such as your checking account numbers, social
security number and other information that in the wrong hands can cause you
much more trouble than a seemingly simple loan.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น