Payday loans are among the most expensive loans out there. Still many people choose one. What are the best options for choosing a payday provider and what choices could you make instead of a quick payday loan?
Why payday loans?
Many people run out of money before the end of the month. While they still need money for food or purposes. That's where pay day loan providers step in. They offer instant payday loans that lasts for some weeks up to a month and promise instant acces to cash. Instead of searching for other options people take this chance and choose a rather expensive loan. It is known that payday loan providers cost rather a lot.
Other people that choose a payday loan is because the checks on your credit rating are less or even non-existent. Persons with bad credit ratings or who are already indebted are still able to have access to money loans. The big downside is that many people are not able to repay the loan and end up being even more indebted with all of its consequences. There are even people who shop from one payday loan provider to another. Other terms that are used for payday loan providers include cash advance.
Choosing a payday loan
The general costs for a loan at a payday loan providers is rather high. Some ask a ridiculously high interest rate, where others ask you to pay other type of cost. While you are in the process of choosing a provider you will find out that those additional cost are often hidden and that the providers are often trying to mislead you. They advertise with low interes rates for example but the real cost only appears in the end of the process. Be aware of those extra often hidden costs.
With pay day loans the interest rate on an annual base is pretty bad. Compound rates can be above 30%. This is even without taking into account the additional fees that are involved with many pay day loans. If you can borrow money from friends or family this is a much better choice. Even better is to avoid the need for these loans.
Additional extra costs also will apply when you're late with paying back the loan. If you're looking for a fast cash advance then you may not be bothered by these extra hidden costs but they will bug you and you may get deep in the shit for not paying attention. This especially tends to happen to young people or low educated persons.
Solving your debts
If you're indebted there are certainly ways out of that situation. Often there are organisation that may help you with debt repayment. They can help you finding a cheaper loan provider to get rid of your current debts or help you with courses on money and dealing with money in your personal situation. These may be great opportunities that help you to move on with your life and stay forever out of debt.
If you're stuck with little money than there may also be other ways to find what you need. You can look for free food for example and choose not to buy things that you do not really need. It's also not impossible to simply not buy anything for a whole year. Other things you can do is sell stuff that you own, such as your car, or go to a pawn-shop. A pawn-shop is often a great way to get quick cash while not running any risks of having to pay back your loans.