Pay Day Advance Loans
Pay Day Advance Loans Are Better Than Credit Cards Or Personal Loans
People will find themselves in debt at one time or another. The lack of funds can be a result of unexpected expenses and circumstances such as medical bills because of sudden illness or being laid off. Bad financial planning and not paying bills on time can also cause debt to accumulate. There are many potential sources of cash – borrowing from family or friends, pay day loan, credit cards, personal loans – but there are some instances when one option is better than others.
Some people would be too embarrassed to have people they know find out about their financial problems, much less borrow money from them. Others simply don’t trust themselves with a credit card. It’s too easy to put off repaying credit card charges, and in the meantime, the balance keeps growing.
In fact, the credit card charge could easily end up almost double the original credit card purchases. For instance, a cardholder charged $5,000 at 1.46 percent interest per month and a minimum payment of either 3 percent of the balance or $10 (whichever is greater). At this rate, it will take the person 215 months (nearly 18 years) to pay off the card and repay a massive total of $9,411.
On the other hand, personal loans from banks and other traditional lenders have longer borrowing terms and almost always have a minimum loan amount. If someone only needed a few hundred dollars, it is not worth borrowing a larger amount just to meet the minimum loan amount and paying for it for the next couple of years. By then, the borrower would have forgotten what the cash was for.
Pay day advance loans are ideal for short term borrowing of small amounts, from $100 to $1000. Because the terms are shorter—from 14 days up to 45 or 60 days—the interest rate is also higher compared with the other options mentioned previously. But then, this motivates borrowers to stay on top of the loan, repay it as soon as possible, then move on.
The process for applying for pay day advance loans is easy and fast, but it is not a guarantee that the requested amount will be the approved loan amount. Most established and reputable lenders are also responsible lenders who evaluate applications and give borrowers the amount needed which will not lead to difficulties in repayment or bad credit. In extreme cases, applications may be turned down, especially if the lender thinks the borrower might struggle with the repayment or if the borrower has a very bad credit history.
About the Author
Greg Ellis co-founder of Payday Online, Australias preferred short term lender, shares his insights on money matters. Founded in 2005 Payday Online has helped thousands of Australians with their fast cash loans but thats just the short term solution. Payday Online also help people in the long run by providing budgeting tools, e-books and individually researched articles on money matters and financial tips. The aim is to assist people in achieving instant and long term financial freedom.