Pay Day Loans:
Money! We all need it, we all want it, and most of will never have it, enough to be rich that is. The free enterprise system works well here in the states, unfortunately the lottery is not so fluent in pay outs. Sometimes business runs short and if business is short then funds are short. There are no miracle solutions but there is a temporary solution for a temporary problem.
The bills are paid, the groceries are bought, but suddenly the car breaks down. No, you are not in financial trouble; you just had a temporary emergency need for more than expected cash. In situations such as this one pay day loans can be a blessing. Unfortunately, the money is not a gift, and the penalties for getting such loans are steep but if you need your car to get to work then it is most defiantly worth the risk. However, if the money is about luxury items such as name brand electronics or just “I want” stuff, then it would do you well to have a little patience and to wait.
Online payday companies make it almost too easy to get a pay day loan. However, if the cash is truly needed for an emergency then they can be a miracle. The way it works is simple. You prove to the company financing your loan that you have bank account and a job. The company will verify your information by calling your place of business just to ask if you are employed. Next they will verify your banking information and you telephone number. Finally they will ask you to provide references. Then your job is to wait, and usually within the hour they will have the answer you need and an amount that they are willing to lend.
The repayment method for those loans is taken right out of your banking account, along with the fees on the day specified. Beware not to make the mistake of not having the funds available for them because the computer does not differentiate. Before you know it you are paying banking fees, late fees, and occurred interest and fees associated with the original loan.
The risk associated with the loan is great. You as the borrower have to make the choice between want and need. How bad do you really want it, and in the end, if you don’t necessarily need it but get it anyway, you will find that you have paid double for what it would have cost had you just waited. The risk is there, as are the benefits.
In the end, if you absolutely need the cash then get only what you need. Pay the entire loan amount back with the next paycheck if you are able. This will prevent the interest and fees from overwhelming you. Finally, err on the side of caution. Generally if you have to ask yourself if what you need can wait, it is generally not a need at all, but a want. The solution is in the way you budget your money. A cash advance is a band-aid for a problem, not a cure.