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Payday loans
- Thread starter Greyscale
- Start date
Terrywoodenpic
Oldest Heretic
They are for most people a downward path of accelerating debt.
However if it is a one off emergency and you can settle up on pay day and not need another loan at the end of the month, then they can help. But the interest is astronomical.
However if it is a one off emergency and you can settle up on pay day and not need another loan at the end of the month, then they can help. But the interest is astronomical.
Use it if you have to, only as an emergency, but pay it off as soon as you can.
My wife sees it as well it's only costing us $50 to borrow $250. No, we've spent the $250, that's gone. Now we got to pay $300 out of whatever our current budget is. Some folks when it gets around to having to pay it back can't afford the $300 so they give another $50 to carry the loan another couple of weeks.
Shadow Wolf
Certified People sTabber
They are best avoided, but if you need one you need one (and will want to pay it off quickly and be assured you'll be ok giving that money plus a chunk back).
Stanyon
WWMRD?
The way I see it it is legalized loansharking but used wisely it can help in the short term. Years ago when I was not doing so well I used a $100 one to cover a cheque because for some reason the company I worked for had a problem with their direct deposit and it overdrew me by $30, the loan cost $10 but it was better than being charged $35 from the bank for insufficient funds. They are best avoided completely as far as I am concerned as some people get stuck in the trap of revolving payday loans fairly quick if they are not careful, but can be helpful if using some common sense.
Earthling
David Henson
The answers is no and probably. I can only guess at the second one. You have to ask yourself, where is the benefit in that?
Father Heathen
Veteran Member
Loansharking. People use them with the intention of getting out of a hole, only to dig themselves a bigger one. They prey on the poor and desperate.
Shadow Wolf
Certified People sTabber
Covering a bank overdraft is the only time I've used one, because their fee was cheaper than the bank's.
Twilight Hue
Twilight, not bright nor dark, good nor bad.
It takes the term scam up to a whole new level.
Shad
Veteran Member
The rates of interest can be extreme depending on applicable law and what the company offers. I advise looking at banks and credit cards as alternative if one needs funds monthly and long term.
Sensor
Member
It's a short-term financial help and they appeared firstly as an alternative to credits. Payday loans are still often used instead of them in many countries for solving accidental money problems and because comparing with applying for credits, there's no need in good general credit history for you.
They have also such pros:
- fast and easy application process (there's no need for much paperwork in its case and all process takes no more than an hour)
- good variety of money to borrow (that depends on certain companies but usually the maximum amount of money you can get varies between $1,000 and $5,000 paydayloan.network/emergency-loans.html)
- getting your money in cash very fast too, anytime you need (so there's no need for waiting in lines in case of banks)
But their interest rates are very high and in case of missing your repayment terms you'll additional fees which are very high too and much more comparing with standard credits in banks. Considering that you can get a very big debt in the end which will be too hard to repay.
They have also such pros:
- fast and easy application process (there's no need for much paperwork in its case and all process takes no more than an hour)
- good variety of money to borrow (that depends on certain companies but usually the maximum amount of money you can get varies between $1,000 and $5,000 paydayloan.network/emergency-loans.html)
- getting your money in cash very fast too, anytime you need (so there's no need for waiting in lines in case of banks)
But their interest rates are very high and in case of missing your repayment terms you'll additional fees which are very high too and much more comparing with standard credits in banks. Considering that you can get a very big debt in the end which will be too hard to repay.