At one point or another, we all get into a financial bind and have to come up with money and there is no one that we can borrow from in our inner circle. We call the bank and we ask to borrow money and they deny us and our credit is not the best so we are unable to qualify for a credit card. This is a tough reality for most individuals but luckily for us, there are a few things that we can do to make sure that we pay the money we owe on time. Luckily for us, we can get a payday loan and settle our debts.
What are Payday Loans?
When you need money fast you can get a payday loan. A payday loan is a short term loan that can be used at your discretion to cover anything you need until your next paycheck. This is a quick and easy way to get the money you need without the hassle of begging for the money from people that may not have it. There are many payday loan companies out there that would gladly payday loans the money for a couple of weeks to a month without question but at a cost.
How does a Payday Loan work?
Is this the best loan for me?
If you are a responsible adult and can manage to pay back the loan on time then when it comes to payday loans, it is nothing that you can not do without a problem. If you are someone who is typically late on repaying, then this is a risk that you are better off not taking because the average ARV on a payday loan can be around 400%. To put that into perspective, if you borrow $1,000 and do not pay it back immediately, after a year you could owe up to $4133.88. That is $3,000 in interest.
How do I pay back my loan?
The best way to pay the loan back is within the next pay period, which for most people is within the 14 days or every couple of weeks. This way, all you end up paying for is the service charge for the loan which is typically around $15 for every $100 borrowed. In our previous example, if you borrow $1000, you can be looking to pay back around $1,150 in two the three weeks.