2007-03-27 05:43:33 · 9 answers · asked by MS.B 1 in Business & Finance ➔ Credit
A payday loan is a very short term loan. You give the place a postdated check for the amount of the loan, plus a fee (anywhere from $7 - $60 or higher) and they give you a check to take to your bank and cash right away. They cash your check on your payday.
They are good for emergency situations only, and you will be short the next payday.
People fall into problems when they do payday loans over and over. That's not what they are meant for.
For me it was worth it, since I only did one and I had a real emergency at that time. I didn't fall into the cycle that a lot of people fall into.
2007-03-27 05:59:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
At all costs, stay away from Payday loans, they are obscene rip offs and should be illegal. A payday loan is essentially a small loan against your wages. A PD loan company will advance you whatever you're looking to borrow, say $200, and then will automatically deduct that amount from your checking account on your next payday, PLUS interest. It is not uncommon for a PD loan to cost 50% or more in interest, so that $200 loan could cost you $300. It is also not uncommon for borrowers to be late on repaying the loan in which case the interest accrues for another pay cycle, so that's another $150 on top of the $300 you already owed. It just keeps getting worse to the point where you could owe this sleazy outfit thousands for borrowing only a couple of hundred dollars. Do NOT get sucked in. They are predatory loan sharks and scumbags, avoid like death itself!
2007-03-27 06:00:45 · answer #2 · answered by douglas l 5 · 1⤊ 0⤋
Only borrow what you can payback after two weeks. Used wisely (and that is the key phrase) it is less expense then having multiple NSF fees from a bank. Douglas in his rant about payday lenders failed to mention that!
When people complain about their woos with payday lending it is because they do not manage their financial budget well. Payday lending is not a short term solution to a longer term budgeting problem.
It is no different than opening up multiple credit card accounts then complaining that you cannot afford to pay them back.
I work for a payday lender -Check Into Cash. Go to the link below to read how payday lending is NOT predatory and the facts about the industry
If you decide on a payday advance loan, make sure you shopped around and fully understand what you are signing up for.
2007-03-27 17:09:39 · answer #3 · answered by Tim S 1 · 1⤊ 0⤋
A payday loan is a short term loan for emergency situations..
They ussually charge $18-20 per 100... therefore if you borrow $300, you pay 354-360 back...
I have been living on it for a long time.. It affects my payday check. and therefore once i pay it I always find myself borrowing again to fulfill what I should have done with the previous paycheck.... I would not advise anybody to get into it..
2007-03-27 06:20:03 · answer #4 · answered by Redeemed 5 · 1⤊ 0⤋
A payday loan is the easiest method of meeting your emergency cash requirements till you get your next paycheck. Today many Internet lenders offer online payday loans. You complete an online application and send your bank statement to the lender. After verifying the credibility of your bank account, the lender processes and sanctions the loan and transfers the cash unto your bank account.
Due to any inevitable circumstances, if you cannot repay the loan by due date, you can get the due date extended by directly debiting your account with the fees. To be eligible for an online payday loan you should be at least 18 years of age, a citizen of US, have a bank account in proper order, hold a job and have a fax machine.
2007-03-28 00:29:00 · answer #5 · answered by hendy h 2 · 0⤊ 1⤋
A payday loan can help when you get in a pinch, but you shouldn't get in the habit of using them. That's not what they're intended for. They can be cheaper than bouncing a check or paying a late fee. Just make sure you go to a reputable lender (one that belongs to CFSA) and not a fly-by-night outfit. And make sure whatever you're borrowing the money for is a necessity, not something trivial.
2007-03-28 09:34:46 · answer #6 · answered by jay p 1 · 0⤊ 0⤋
only in extreme circumstance should you get a payday loan, and only if you will make a lot more the next pay in order to pay it back.
it is where you get lent money like a loan shark, and when you get paid you pay them back with heaps of interst, sometimes 40% or more. look out.
2007-03-27 05:52:04 · answer #7 · answered by Anonymous · 2⤊ 0⤋
Here you can get the best rates on your area: WWW.LOANSVAULT.NET
RE:What is a payday loan? Is it worth it?
2014-07-16 19:12:48 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Payday loans are a bad idea. They're super-high interest loans that the company gives to you hoping that you'll default on because it benefits them. Check out the FTC's warning: http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.htm
2007-03-27 05:52:18 · answer #9 · answered by doctorquack12 1 · 2⤊ 0⤋
Find the best rates for people in your situation at: MYLOANSRATES.NET
2014-05-07 12:43:27 · answer #10 · answered by Anonymous · 0⤊ 0⤋