Is It Worth The Heavy Price Tag to Take Out a Payday Loan?
Although most wage earners are able to juggle their weekly expenses fairly well until the next payday, they are utterly devastated when no more money is available during periods of unexpected cash needs. We are talking about sudden unforeseen expenses that require immediate settlement like car repair, a roof that sprung a leak or a family member that needs to be hospitalized. These are some scenarios where a payday loan will come in handy.
However, quick financial relief doesn�t come without a price. In fact, a paycheck loan does carry a high price tag. It can go anywhere from $15 up to $25 for every $100 you borrow. These loans need to be paid in full on your next payday because failure to do so will only incur additional charges and interest which will bring in bigger debts.
Loan providers ensure that you will be able to pay on time by loaning out an amount that can be settled by your paycheck. Besides that, you are not allowed to take out more than $400 on your first payday loan. You have to first prove that you can settle your debt promptly and only then can you avail of loans of up to $1500 on your succeeding transactions.
Payday or paycheck loans are unsecured loans meaning you don�t need to put up your car or any property as collateral in order to take one out. Your word is your bond in this kind of transaction. Break the repayment agreement and you can end up with higher interest, a bad credit score and worse, a costly court litigation. Paying on time, however, has its rewards such as bigger loans during emergencies and an improved credit rating.
Speaking of credit score, you can take out a paycheck loan even if you have an undesirable credit history. You won�t have to deal with an embarrassing credit check and can take out a loan even if you are still currently in debt with other creditors.
It may be true that all the money in the world cannot solve some of life�s problems, but the failure to have it when you need it most can cause bigger problems. A payday loan can be expensive, but it is cheaper in the long run than having to deal with late fees, credit card charge-offs or bank overdrafts for bounced checks which were not settled at an earlier time. Payday or paycheck loans are designed to get you the money when its need requires immediate action. GP