What is the Benefit of Payday Loans? | Personal Finance World

Finding money when it is urgently needed can be harder than one can imagine. Faced with an unexpected amount of bills and the increase in repayment charges of loans taken, one can easily get caught short before payday. Life before these loans arrived meant waiting helplessly before the next paycheck arrives.

Payday loans for emergency requirements:

Payday loans are small amount loan taken from a specialized moneylender and meant for tiding over the exigencies till the next pay date. These online loans range from as low as ?50 to ?1000 and are given within 15 minutes of the application made by borrowers. The lenders help the borrowers meet unexpected financial needs by offering small amounts to meet trivial expenses, which can range from repairing cars to necessary shopping to be done, paying taxes or even going on short trips. Further, there are no administrative charges levied and the mode of repayment of the borrowed sum is also easy. The charges are at a flat rate, with no chance of hidden costs. The interest charged is, for example, ? 25 for a sum of ? 100. The APR, which amounts to 1737%, which is variable, may seem to be stiff but if we consider the fact that this is an annual rate and that the repayment period involves around a month. The annual fees have little bearing on it and so the borrowers feel safe enough to apply for these payday loan.

Procedure for Payday loans:

The process of application is also simple. A brief form needed to be filled in only 60 seconds and the final decision of the lender along with the borrowing options are made known immediately. The borrower has only to intimate his choice of option made and the requested amounted is transferred to his account in less than 15 minutes. The payday loan is available everyday, 365 days a year to help out people when they are in acute need of financial relief. So, we can easily say that they are god sent for those facing a tight financial predicament and who cannot approach the banks because of their lacuna of not being able to provide securities and collaterals. Thus it sounds financial without much risk.

Avoid the menace of payday loans:

Cash problems can make people consider receiving payday loan. Payday loans are small, temporary credits with great interest rates, which can lead your frowns. The characteristic interest payment on the loan is $15-$20 in $100, and most loans must be refunded within fourteen days. Taking such loans is not fair enough, in order to avoid taking the advance, you may follow the steps:

Comprehend the accurate price of payday loan
It?s a comparatively better option to reflect on credit card loan in its place. Receiving a payday loan can rate you a high interest rate of a lump sum amount throughout the year.
Cut out your expenditure and establish your budget chart.
To elude payday loans, generate a budget that holds all your incomes and expenditures. Plot your resources for each kind, and use willpower to wisely use your incomes. Budgeting can be highly a challenge, but nothing suits the best to evade lending a paycheck.

Source: http://personalfinanceworld-neil.blogspot.com/2013/01/what-is-benefit-of-payday-loans.html

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