by Gerald Fox
We’ve all had the experience of having a little month left over at the end of the money. You’ve either made a mistake in making your budget, or some unexpected expense has come up like a broken washer or a broken car. You’re strapped for cash, the credit card has already reached it’s limit and you don’t feel comfortable asking friends or relatives for money. In this situation, you can consider a payday loan.
A payday loan is a loan that’s typically in the $ 100 to $ 500 range. It’s a small loan, with a quick payback date and high interest. The payday loan has advantages and disadvantages. But if you’re strapped for cash, the advantages sometimes outweigh the disadvantages.
A payday loan is quick and easy. You don’t have to put you friends or relatives in a tight spot and ask them to give you money. You can loan a small sum in a discreet manner via a payday loan company.
If you have bad credit, or you’re a little worried about your credit score, the payday loan offers another advantage. You don’t have to go through the usual credit check. This speeds up the process immensely, making it possible to have the money within a day.
This is what makes a payday loan a quick fix for your short term credit problems. However, you have to be sure that you can pay it back within the set time limit. Most of the time, the deadline is 3-4 weeks. If you can’t pay it back then, you’re looking at some huge interest costs.
Payday loan companies give you the option of extending your payday loan. This is also known as a ‘roll-over’. The problem with rolling over, is that the interest rate can reach high into the double digits. Don’t let this happen to you and pay attention to the date that the loan should be paid off.
