At first glance payday loans may seem like an excellent thing to engage in. It helps you get the money that you need right away so it may seem like a feasible option for many people that are in need of some quick cash. There are two sides to the payday loan concept, however, that everyone should take into consideration. To start with, let’s dig in on a decent video on it (which I found on youtube by KA):
The obvious pro to getting a payday loan is that you get the money that you need. You have the ability to pay whatever bill you need to pay without having to go to family. It can be a real hassle to go to your family and borrow money. They may not have the amount you need. You may even feel embarrassed by having to ask your family for money. When you get the payday loan you get the ability to get loan money from someone that is not family. You don’t feel embarrassed about asking for the money. You don’t feel the pressure of getting harassed about the money from a family member. These are all pros to getting payday loans. You also do not have other people that you know getting into the business while you need the loan. Some people can really dig deep and tell your secrets to others. You may not want people to know why you need the extra money. When you get a payday loan these are all things that you can avoid.
The reality of the payday loan is that the interest rate is going to be substantially higher. This is what people have to factor in when they look at getting this money up front. It is true that you get the chance to get your loan to pay off any type of debt, but you are going to be required to pay more back when you get your paycheck.
If you are a person that is living from one paycheck to the next you’re going to need to find extra money to compensate for the payday loan that you have to pay back. You also need to be able to pay this loan in full. This is not some installment loan that you get and pay in small increments. Once you get the payday loan you are going to need to definitely make arrangements to have the full amount available when it is time.
The biggest downside to the payday loan is that it is ultimately an indication of your inability to manage money or your need for more money. For a lot of people this becomes a revolving door. They get one payday loan and they find themselves needing another loan as soon as they pay that one off. They get caught up in the seemingly endless revolving-door a borrowing money and paying more in interest every time they do this.