Are Payday Loans Worth Having?

Payday loans are small loans that a borrower promises to repay out of his or her next pay check, typically in two weeks. Payday Loans are very easy to get and settle. Widely promoted as the fastest way to obtain cash, payday loans are costly in comparison to regular loans. Many times payday loans are available to those who have trouble getting a bank loan or a credit card cash advance due to bad credit or other reasons.Credit cards may have high interest rates especially if you have bad credit. Bank loans and credit cards are strong alternatives but both are certain to involve credit checks and a lengthy approval process. Working out a payment plan with creditors can allow the consumer to adjust billing to pay off bills over a longer period of time.Cash-strapped consumers run the risk of becoming trapped in repeat borrowing due to triple-digit interest rates, unaffordable repayment terms, and coercive collection tactics made possible by check-holding.

Once you are approved, the amount of your loan is transferred overnight into your checking account; you have the cash the next day. Millions of people are finding themselves short on cash and needing a little help to carry them to their next pay check.Money given as loan depends on the borrower’s income. Unscrupulous payday loan companies may try to obtain more money from you or otherwise defraud your loan from them, and you should be ready to go to court if it is necessary. Yes, the cost of the loan is high, but it provides you with the money you need, when you need it, thus avoiding a lot of stress and trouble.Lenders target the young and the poor, particularly those near military bases and in low-income communities. However, the interest rate and the cost of payday loans vary with lenders.

Many surveyed lenders automatically renew loans by electronically withdrawing the finance charge from the consumer's checking account every payday.Military personnel, engaged as they are in day-to-day security matters of the country, have little time to devote to their financial needs that arise from many works done in a family every other day. With the employment status and income of military personnel known already, it takes no time in processing of the military payday loans application. The military person seeking the loan offers a personal post-dated check of his required amount including the service fee to the lender.

The lender then issues military person the check of the borrowed amount after deducting his fee.Payday loans are 10 to 13 times more expensive than these small consumer loans. The fee for most payday loans are about $15 to $30 for every $100 borrowed. The fee for most payday loans are about $15 to $30 for every $100 borrowed. Consumers may be mislead into thinking that payday loans are a cheap and convenient way of borrowing money for the short term.