Payday Loan – The Best Way To Solve Your Temporary Money Problems
If you are in urgent need for money and there is no other way then to borrow it, you have several alternatives available. Suppose you don’t have much time or a perfect credit rating, so the bank is out of the question. If the amount of money you need is not too high, a payday loan might be the best solution. It is a short term, small amount of money loan, very easy to get. So here is a review of some similar alternatives:
As well known, a credit card is not money but in fact an alternative for money, and although it might be useful in lots of cases, there are situations where only cash is acceptable. The credit cards actually are not meant for exchanging for cash and if you use a credit card as a cash advance card, the fee your account will be charged will assure you on that. When you do a precise calculation which include the fee, the interest and the cost of membership, you will clearly see that the costs of getting some extra cash with the credit card are much higher than the payday loan expenses.
An overdraft is a certain amount of credit your bank gives you when your account is 0,00. The owner of an account so can withdraw the money when his account is actually empty. The bank is usually willing to credit you as long as your income is regularly deposited to your account. For all that time the bank charges the interest, which is everything but low for these types of loans. You don’t have to return your money as long your income is permanent and balanced, but if that changes, you might face a real financial problem. The moment the bank registers no usual inflow on your account, the amount of the overdraft decreases significantly. The bank is even allowed to revoke the credit with no previous warning.
Borrowing money from friends and family could be the worst solution. First of all, you will have to have wealthy people for your very close friends or relatives, and second of all, you will certainly pay an interest, only (maybe) not in cash. Lending money is considered a major favor, as it really is, and you are going to have to be grateful for a long time. Not to mention being prepared to do the same in return; if that person finds himself in need of money, you’ll be the first he’ll come to.
And the payday loan?
The payday loan amount is related to your income, it’s usually up to 50% of it. After completing a really simple application process, the money is deposited to your account right away. The repayment day is usually the determined day of your next paycheck. Yes, you will pay a certain amount of a fee and the interest. But compared to all the mentioned alternatives, those expenses are lower. Your loan is outstanding for a very short time, usually a fortnight, so the total amount of interest does not increase. And the lenders do not expect your eternal gratitude.