In general, payday loans are small and short term loans. The small and short term payday loans are actually featured in some advertisements on radio, television, the Internet, the email, and many people have even considered using this type of credit service. Well, if you are trying to get ahead financially instead of falling further behind, the short term payday loans are certainly not the way to go. Although the short term payday loans are granted to provide the quick credit, they are tremendously expensive and will just exacerbate the situation in the long run.
What is Short Term Payday Loans
The short term payday loans that are generally made by check cashers, finance companies, as well as the other companies, are also often known as check advance loans, cash advance loans, deferred deposit check loans, or post-dated check loans. They basically work to allow the people to obtain cash on the strength of their next paycheck.
Short Term Payday Loans
Applying for short term payday loans is actually not so difficult. Just remember that in order for you to receive short term payday loans, you must write a check for the amount you want to borrow plus the company’s lending fee. If such is tackled, the short term payday loan company will then give you the amount of your check, less the fee, and usually does not collect on the check until your next payday.
It is further maintained that at the time of your next payday, you as a short term payday loan customer have a number of options. First, as a short term payday loans customer, you may permit the company y to cash the check you wrote for the loan; you may go to the company and pay off the short term payday loans in person; or you can extend the short term payday loans, but no more than twice, by means of paying another fee, which is in fact the most expensive option ever suggested.
For further information, it is important to learn that short term payday loans generally offer short term credit at high rates. As such, when you borrow with short term payday loans, there is a great possibility that you may pay a percentage of the dollar amount borrowed or a set fee for every dollar amount borrowed.
Charges for short Term Payday Loans
In some instances, the short term payday loan lenders may charge from $15 to $50 for every $90 borrowed. So, if you decide to lengthen your short term payday loans through another pay period, you should, therefore, pay the entire fee again. By doing this, many short term payday loan experts claimed that you could easily end up employing the most or all the money you borrowed to pay these pricey fees.
Given those facts, many loan experts have commented that short term payday loans are not really the most prudent way of borrowing, rather they are the least careful means. As such, it is then necessary to take consideration of the other credit sources before deciding on short term payday loans. In the first place, it is necessary to always look for the lowest Annual Percentage Rate (APR) as well as the finance charges that involve the short term payday loan fees, interest, and the other credit expenses.
Alternative to Short Term Payday Loans
Rather than getting short term payday loans, you can consider a small loan from a credit union, from a small company, advance payment from the employer, or loan from or friends. These may help you raise money as much as you can raise in short term payday loans.