Payday loans might provide you with due financial assistance in times of dire needs, but it should be remembered that as a borrower you need to behave responsibly while dealing with them. Knowing about both their merits and demerits would help you duly in this regard. It is a well-known fact that short term financing indeed turns out to be very helpful in times of financial urgencies. It can be availed even when borrowers do not have good credit scores. Moreover, once you apply for short term financing, the money is credited to your account within 24 hours of approval. However, most of the borrowers fail to realize one of the most notable flaws of this type of financing.
Short term loans carry very high rates of interest. The rates hover around 15% and on top of that you might be asked to pay a borrowing fee as well. You should not even think of undermining the influence of the rate of interest in governing your decision of securing the loan. If you are taking them, make sure you’re ready to repay the debt on time. It would be advisable that you don’t opt for the same in case you are not absolutely sure about your repayment capacity. You will be provided with an option to roll your loan over but in that case be prepared to shell out even higher rates of interest.
What Should Be Considered?
Paying back short term loans would not really turn out that difficult in case you are ready to factor your decision on a few considerations:
- Are you taking the no faxing loans for a valid reason (like paying off a medical bill or else a semester fee etc) and not for something like funding a fancy dress party or else a holiday trip?
- Have you explored all the other monetary resources and made sure that you will not be getting any help from them in order to meet your financial urgency (peer to peer lending, help from friends and relatives, modest bank loans etc)
- Are you sure that the need at hand can’t wait till your next payday?
- Are you aware of the state regulations that govern the payday loans?
- Are you sure that you are going to pay off your debt on time (i.e., on your next payday?) without any problem?
- Are you conducting enough research online to find out about lenders who are providing comparatively more affordable rates than most of the others?
Author Bio: Alan Starc’s skills as a finance blogger can hardly be contended today. He derives his expertise from several years of association with the content industry.