Payday Loans: Is It Worth It?

payday loans

Sometimes in life, things happen and when they do we need to be ready to adapt and make the best out of a bad situation. One issue that most of us fall into is having money issues.

When unexpected expenses pop up during the week, like a car accident, medical issues or other injuries and we do not have the funds to handle it, it is good to have someone we can turn to to get that money fast. One popular way that is available is getting a cash advance online at expert payday loans.

What is a Payday Loan?

A Payday loan is a short term loan issued to you to pay off any debt you may have or any emergency that arises that you can not afford to pay before your payday. The sad fact is, most people are living from Paycheck to Paycheck and do not have an extra $1,000 available to cover any emergencies. With a Payday Loan, you can get the money you need in minutes to do what you need to.

Who can qualify for a Payday Loan?

Anyone can qualify for a payday loan it just depends on whether or not you are living in an area where Payday loans are legal. Most states allow for a Payday Loan but it is depending on where you go that will determine the maximum allowable amount that you can lend to people for a loan. For example, Delaware, Idaho, and Illinois have the highest cap amount at $1,000 while California and Montana have the lowest at $300 according to experian.com

Are Payday Loans right for you?

If you are very disciplined and can manage to pay back your loan on time, this is a great way to cover things when the “if” in Life happens. The process is simple, you can go online or go inside of a branch that offers a Payday Loan, fill out the application and if approved, you will then be sent your money in the form of cash, check, or have it directly deposited into your account. The loan fee is normally mandated by the state to be between $10-$30 for every $100 borrowed. This means that if you borrow $1,000 you will be charged between $100-$300 per loan. 

How to pay back Payday Loan and is it worth it in the end?

Most lenders are open to accepting checks, credit, direct debit, or online. The ARV of a loan is around 400% so if you do not pay back the loan within a year, it can cost you big. For example, if you borrow $1,000 and do not pay the loan off for a year, you could owe almost $4,200 by the end of the year. The lenders of payday loans do not run your credit when applying so it will not be on your credit report initially but in most cases, people are unable to pay the loan. When this happens, the loan goes into collections where the collection agency will likely put the loan owed on your credit report.