Know your Loans

Admittedly, stretching the budget before the next payday is not as easy as it used to be. Sometimes, even if you had the money allotted for all expenses, you will still need to spend more for clothes, food, and other needs. If you have a credit card that could be a problem too.

For sure you’ve heard of those companies offering quick payday loans or cash advances. These lenders offer a short-term unsecured loan at reasonable rates without any delays  to be repaid at the borrower’s next pay day.  Amount range from how much you need.What’s more convenient is the fact that transactions can be made online, using an online loan application process to fill the form and receive quick cash within few hours without any obligation. Unlike personal loans, pay day loans do not require a lot of documents. You just need to prove that you are indeed employed; full time or part-time and show a proof of your income, voila! Being approved is easy you can get the money and use it how you deemed necessary. Of course all transactions are under confidentiality and there are no hidden fees either.

   

However, payday loans are frowned upon too. It seems lenders are on a high risk when they lend money. Takers are also at risk especially because they write a post-dated check to the lender when they borrow money. If they don’t have enough money in their account, the check will bounce. Some payday lenders have therefore threatened borrowers with criminal prosecution for check fraud which came anyway from borrowing from them.

Borrowers may also easily give in to lending despite the high interest rates. Since these lenders are the only ones willing to lend them money, it seems to be the only choice. These would likely trap them in a “debt-cycle,” in which they have to repeatedly renew the loan and pay associated fees before saving up and later on paying everything.