Is Getting a Payday loan the Right Choice for you?

Even with the best planning and with the highest level of fiscal responsibility, most of us will occasionally find ourselves in a situation where we are momentarily strapped for cash. Even though we would really like to be able to avoid such situations, they can sometimes be impossible to predict. If you do find yourself in such circumstances, you might not have too much choice and you might start considering payday loans as a viable option.

These types of loans can be rather convenient for getting you out of a tight spot, but they are generally far from an ideal solution. The only thing that you can do in that case is to weigh the advantages and disadvantages of getting a payday loan and act according to your assessment of the situation.

First you might want to consider your other options, can you borrow the money from a friend or a family member? Pawnshops are generally only reserved for dire circumstances, would your situation warrant turning to them as a quick source of money? There are a number of different options, like taking out a cash advance on your credit card, getting an auto title loan, or asking for a paycheck advance at work. If none of these appeal to you for whatever reason, payday loans might be the only option that you have remaining.

They do have a number of advantages. First of all, they are available to anyone over 18 years of age who has a steady job. Your credit rating will not be a factor when your suitability for a payday loan is judged, you only need to provide the last month’s pay stub and some information on yourself and you’re good to go.

Another one of their advantages is that most cities have numerous payday loan offices, end even if yours for some reason doesn’t, it is rather easy to get a loan with an online application. This means that wherever you are it won’t be a problem for you to get a loan of this type. One of the most convenient tings about these loans, apart from the fact that they are ridiculously easy to qualify for, is that your request will be processed and that you will receive the money in less than 24 hours. This is exactly what makes them good in extreme situations when your need to find some money quickly.

However, they do have some rather unpleasant qualities, the most important of which is their very high interest rates. You will find yourself paying a lot more for a payday loan than you would if you took out any other type of credit or loan. This is usually justified by the companies that are giving this type of loans, by their allegedly high processing costs, but as there is really not that much paperwork involved on their part, this explanation doesn’t seem to be rock solid.

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