Are payday loans a good option?

Submitted by Anonymous (not verified) on Tue, 06/30/2009 - 03:57

I need some cash urgently; I had thought that payday loans would be a good option. But, I read through the forum that one can run into debt easily with payday loans. Is there anything else I can do to get cash immediately? My credit score is 685

Hi hjgr,

In my opinion, you should avoid taking a payday loan. Payday loans often have high interest rates, that keeps accruing every time you default on payments. I have heard that many people run into debt by taking a payday loan, and at the same time it adversely affects the credit score. There are 3 alternatives to a payday loan. They are as given below:

1) Short term loans- Some small loan companies offer short term loans. These loans are often given out at affordable rates of interest. You must read the terms and conditions, before applying for these loans.

2) Cash advance- A "cash advance" allows you to use your credit card like a debit card. You will be able to get cash, using your credit card at an ATM. But remember to read the company policies related to cash advance. You should check if the company has any charges for taking a cash advance.

3) Borrow money- You can consider borrowing money from a close friend or relative. You can return it back, after you get your next paycheck.

Tue, 06/30/2009 - 08:42 Permalink

Many people overspend from time to time or need a bit of extra cash to cover an unforeseen expense.
This payday loan brought a very large number of various different revolutionary changes in the whole dynamics of getting loans and all the people really have access to cash very faster than ever before. The no fax payday loan provide you an advantage that now you will not have to submit a number of documents.
Payday loans are loans where borrowers get a small amount of money, usually less than £1,000. They have to pay this back by the next pay period. The lender charges a fee that equates to a high annual percentage rate. However, this can be a good option for a short term difficulty. Payday loans are quick and easy to obtain, even for people with a bad credit rating.

Tue, 06/30/2009 - 11:06 Permalink