no signing up for credit cards, no taking me to thousand sites. just staight foward quick loan.
2007-06-13 14:15:49 · 4 answers · asked by fyneashell1 1 in Business & Finance ➔ Personal Finance
Payday loans are a REALLY bad idea!
They have ridiculously high interest rates and getting one typically starts a vicious cycle that is very hard to get out of. These lenders often border on the unethical. Please try to avoid these companies.
2007-06-13 14:29:45 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Forget about the payday loan organizations' advertising ("Use them responsibly and never borrow more than you can comfortably pay off when they're due"). The idea behind payday loans is not for you to pay them off, but to get you to roll your present loan into another loan).
Interest rates on these loans are VERY high and there are often other fees (credit life insurance, for example).
Signing up for a credit card is much better than getting a "quick" loan from a payday lender. The highest interest rate I've seen for a credit card is 32% (on an annual basis). A payday lender may charge that much each MONTH!
If you can get a credit card, DO IT!
Put aside all the negative talk about the interest rates charged by payday lenders. Their rates are NOT ridiculous. They just charge what the market will bear, and people who have jobs but no access to loans from regular financial institutions have to pay those rates if they MUST HAVE the loan and the payday lender is the ony one who will lend them money.
As you can understand, payday lenders have a lot of loans they can't collect. They HAVE to charge high rates to cover their losses. And some people feel they have to go to a payday lender because their credit is terrible and they can't get a loan anywhere else. But recognize that a payday lender is absolutely a "lender of last resort."
2007-06-13 22:59:00 · answer #2 · answered by SCOTT M 7 · 0⤊ 0⤋
The other people before me are correct. It is easy to get caught-up in a compulsive cycle with Payday loans because the rates and fees are extremely high. Once you borrow you will have to give up too much cash in return. Then you may need to borrow again because of the excessive amount returned and thus creating a cycle. In the cycle you will loss a lot of cash.
2007-06-13 23:03:04 · answer #3 · answered by dubdwells 2 · 0⤊ 0⤋
I must agree with the first reply. Payday loans, once started are like a vicious circle! Took me a year to finally get out of that circle and I've never used those places again! Been over 2 years now! You'll easily spend over a thousand dollars a year with their ridiculous interest/fee rate!
2007-06-13 21:49:20 · answer #4 · answered by whatchagonnado 4 · 0⤊ 1⤋
While I agree with everyone that payday advances are horrible, that wasn't your question.
I have no idea where you live, but you probably have dozens within driving distance. Just google "payday advance" and follow the map.
DO NOT do one over the Internet.
2007-06-14 10:28:26 · answer #5 · answered by Mike H 2 · 0⤊ 0⤋