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Do You Use Payday Loans For Financial Assistance?

August 30, 2012

Payday loans are used extensively these days. It is said that payday loans and cash advances are the most liquid kind of loans available today. If you need money on urgent basis. If you need money within a few hours. If you need cash on urgent basis. Payday loan will help you.

 

Getting a payday loan is very easy. Although the fees (or interest) you will have to pay for the payday loan might be unusually very high, but that is acceptable. Payday loan lenders are every where. You can either apply for a payday loan in a traditional way by visiting their office or you can apply for a payday loan online by filling out the online form. Every payday loan lender now operates electronically. You can apply for a payday loan over the internet and your application will be reviewed within hours. Additionally, most them will not ask for any documents.

 

So have you ever applied for a payday loan? Do you use payday loans? Do you prefer using payday loans to assist yourself financially?

 

Well, I know a lot of people who do not like payday loans. They never use payday loans whatsoever. They have different views. But majority of them say that the fees of payday loans is very high. That is true. Whereas others say that they prefer to get money from their friends and relatives in case of emergency, and that they never felt the need of borrowing from a payday loan lender. Others have different views.

 

Talking about the fees of payday loans, no doubt, the fee, interest and late payment charges are very high. On average you have to pay $15 to $20 on every $100. Practically this is very high fee. And in case of late payment, this fee can raise as high as two times of the actual loan amount. This is the real problem for most of the borrowers. But imagine for a moment, these lenders help you when you need money desperately. They give you money when you need it the most. They give you money within hours. They do every thing to help you in every possible way when no one other helps you. These lenders actually give you money when you are in a situation to pay any amount in return to them. But when you get out of this situation, this fee looks very high.

 

According to a recent study, the default rate of payday loan lenders is some where around 20 to 25 percent. This means out of every 100 borrowers, 20 borrowers (on average) do not repay them. So you see these lenders are also traveling the same boat. They are also suffering a lot.

 

I am not trying to force you to use payday loans rather I am trying to say that payday loans are meant to be used. There is no point in ruining your budget and finance just because you have to pay a high interest. You must use payday loans provided you need them. Payday loans do not affect your credit score. This is the best part actually. Even if you repay your payday loan after due date, it will not going to hurt your credit history. What else you need?

 

Payday loans are very helpful in several ways. What you need to do is use it smartly. Since these loans are easily accessible, it does not mean that you are supposed to get payday loan even if you do not need one. Excess of everything is bad. Make sure whatever you do, you do it wisely.

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