If your current pay check is just not sufficient enough to get you through until your next payday, or you have an sudden money emergency, you may find yourself considering the option of taking out a fast cash payday loan to help ease the burden of unexpected expenses that seem to jump out at you from out of nowhere.
Although you may feel a bit dubious about taking out a payday loan, since you have likely heard stories about a few of their customers who landed up in an even more abysmal financial quagmire. But, as with anything involving money especially, one should always take the time to understand what you are signing before you sign on the dotted line. Understanding the realities of assuming a payday loan advance will help you to help yourself take control of your financial difficulties.
Payday cash loans are fashioned for people who have credit problems and find it problematic, if not impossible to acquire loans from conventional lenders.
In a study done by the Federal Reserve Bank of New York, they determined that fast cash payday advance lenders are not entirely predatory. They do, in fact help people with poor or no credit, expand their credit alternatives.
Another reason for their criticism is that their compounded interest fees can appear to become outrageous, especially if the original loan continues to be ‘rolled over’, meaning extended, and the repayment cost of your cash advance can become as much or more than the loan itself.
But just take a look at a ‘traditional’ bank credit card situation. Over a period of time your $2000 credit amount owed can easily turn into 10 to15 thousand dollars before you end up paying it all back.
The fact is that payday loans are not meant to be extended for years. These are short-term loans, meant to be repaid within a week or two.
The Community Financial Services Association (CFSA) conducted a survey that showed that nearly 92 percent of Payday loan customers said that the loan was a useful service.
State regulators who oversee the cash advance payday loan industry have reported that they receive a very small amount of complaints about these loan services especially when one takes into account the total amount of times they are used. They also found that the large majority of the very people who are alleged to be taken advantage of by payday loan companies are overwhelmingly satisfied with their experiences
If you need money and think that a payday loan may be an answer, you’ll find that they are fast, convenient, and easy to obtain especially if you have no other options.
Do make sure that you completely understand the information provided by payday advance companies, and only use one when it is truly needed.
And please borrow responsibly.
Author: Stephanie MooreThis author has published 5 articles so far.