All about payday loans: are they right for you?
http://www.accountingfacts.net/articles/3159/1/All-about-payday-loans-are-they-right-for-you/Page1.html
Art Gib
North Western Warehouse (http://www.nwwcom.com/records/records.php) is a private record storage group who provides secure space for storing a variety of records material as well as adequate shredding options for businesses both public and private. The author, Art Gib, is a freelance writer. By Art Gib
Published on 06/22/2009
Thousands of folks get payday loans each and every day. They can really help you get out of a financial pinch. But it's important to remember that they are not designed to be a regular part of your financial routine. Become better informed and make better decisions by getting all the facts first.
All about payday loans: are they right for you?
If you've ever wondered if getting a payday loan might be right for you, you're not alone. Thousands of folks get one each and every day, and such loans can really help you get out of a financial pinch. But it's important to remember that they are not designed to be a regular part of your financial routine. Become better informed and make better decisions by getting all the facts first: are payday loans right for you?
What is a payday loan?
A payday loan can be called by many names: it is also called a payroll advance loan and a check loan. It is a short-term loan with a higher interest rate than most banks and credit unions, and must usually be repaid within a two week period. In other words, it is an advance on the cash you would receive on your next payday.
Why would I want to get one?
As mentioned above, payday loans are not designed to be a long term solution for your money needs at all and should therefore be used carefully. But they can be ideal answers if you are facing an emergency situation and don't have ready money to take care of it, or if you are having trouble with cash flow on any given month. A payday loan is much easier and faster to obtain than a conventional loan and you can have the money you need in less than 30 minutes because there is no collateral required and credit checks are not performed: you only need to have an open checking account with a bank or credit union.
How do I get one?
Individual payday lenders vary when it comes to their specific requirements, but the following guidelines generally hold true. You will:
-- Fill out an application and provide a proof of income and photo identification.
-- Sign a loan agreement, then fill out a post-dated check for the loan amount and leave it with the lender.
-- You will receive the money.
-- You will repay the loan within the two week allowed time period or, if not repaid, the lender will deposit the check and the funds will be removed from your account.
Because of the convenience of the service and there are no credit checks involved, there is a substantially higher rate of interest charged for the borrowed amount. Make sure to carefully go over the terms of your loan before signing so that you fully understand your agreement. Most payday lenders will pro-rate interest charges if you repay the loan early.
Payday loans are extremely helpful when you need to act quickly and time is of the essence. To safeguard your financial health, do not take out multiple payday loans and repay what you owe on time.
What is a payday loan?
A payday loan can be called by many names: it is also called a payroll advance loan and a check loan. It is a short-term loan with a higher interest rate than most banks and credit unions, and must usually be repaid within a two week period. In other words, it is an advance on the cash you would receive on your next payday.
Why would I want to get one?
As mentioned above, payday loans are not designed to be a long term solution for your money needs at all and should therefore be used carefully. But they can be ideal answers if you are facing an emergency situation and don't have ready money to take care of it, or if you are having trouble with cash flow on any given month. A payday loan is much easier and faster to obtain than a conventional loan and you can have the money you need in less than 30 minutes because there is no collateral required and credit checks are not performed: you only need to have an open checking account with a bank or credit union.
How do I get one?
Individual payday lenders vary when it comes to their specific requirements, but the following guidelines generally hold true. You will:
-- Fill out an application and provide a proof of income and photo identification.
-- Sign a loan agreement, then fill out a post-dated check for the loan amount and leave it with the lender.
-- You will receive the money.
-- You will repay the loan within the two week allowed time period or, if not repaid, the lender will deposit the check and the funds will be removed from your account.
Because of the convenience of the service and there are no credit checks involved, there is a substantially higher rate of interest charged for the borrowed amount. Make sure to carefully go over the terms of your loan before signing so that you fully understand your agreement. Most payday lenders will pro-rate interest charges if you repay the loan early.
Payday loans are extremely helpful when you need to act quickly and time is of the essence. To safeguard your financial health, do not take out multiple payday loans and repay what you owe on time.