Whenever we are in real need of emergency cash we tend to look for any solution possible. Unfortunately, sometimes easy solutions are not available and it can be pretty ugly when it happens. Just imagine how bad can it be when you need something to do quickly and only the small sum of money is the obstacle for that. Of course, the best way would be to borrow some money from a friend, but a lot of people are pretty reluctant towards this kind of solutions. If the credit card is not an option also, payday loans may come very handy.
These loans have several very good features. First of all they are extremely quick and you will get your money within 24 hours in most of the cases. Also, these loans don’t need your credit history to be checked and they don’t influence your credit ability. This is ideal even for those who have some financial problems as they won’t be turned out when they apply for the payday loan. Another handy thing about those loans is their availability. Network of the branch offices offering this loan is pretty wide and it is pretty probable that you will find such office within few miles from your home. For those who are adept in using the internet, there are some even sweeter options. Namely, these loans can be finalized even over the internet and this is really useful option.
Although all of these good sides look really sweet, the bad ones are equally strong. To be more precise, there are several issues that make payday loans pretty tricky business. The pay off period is really short for these loans and it goes from 4 to 6 weeks. For this short period, it is not certain that you will have the money needed to pay them back and that can have really unpleasant consequences. Namely, the interest rates are really sky high with these loans and that is really strong argument against them. For this short period of time, you will have to pay some 15% to 20% of the interests and expenses.
This may not look too big on a small amounts but it can be really a lot if you take the maximum amount of the available funds. As any delay means new interests and new expenses, you can find yourself in really big debt over pretty small sum of money in just few months. So, it is really important to pay off these debts the very instant you are able to do so. If you are not sure that you will have the money on the pay off day, it is not a bad idea to authorise the loan company to withdraw money from your account. This will make you some trouble with the bank but it is nothing compared to the issues that can be made with those companies.
Bottom line is, use these loans if you really need the money for something urgent and be extremely careful to pay them off in time, and that will keep you out of the major trouble.