Payday loans mean small loans or short term loans. It may be for about two weeks. It may be $ 200. You can use payday loans if you are in want of money. You will write a check for the amount you want to borrow and plus a fee. You will have to repay the loan within due time. If you fail to repay the loan in time, it surely comes due. You will be able to roll it over in order that the loan is extended. You ought not to repay it. Fees will be accumulating.
Cost of Payday Loans very expensive
Generally Payday loans are very expensive. Annual Percentage Rate (APR) may be several hundred percent. Such as, if you borrow $100 for 2 weeks, you may pay $ 20. The Consumer Federation of America has given information that you may pay a high rate of Annual Percentage about 426 %.
The problems of Payday loans
You have to pay extremely high fees for payday loans. Payday loans can’t solve your real problem. Rather payday loans will deepen your problem. You will have to face financial difficulties. Your financial condition will be worsened in future because of high rate of interest.
Your expenses must be going up. You may receive payday loans as a short time strategy. But as a long term strategy, payday loans is not helpful at all. Long term payday loans may bring difficulties and create deeper problem in life.
Bank Payday Loans not better alternative
Bank payday loans are also expensive and risky. For bank payday loans you need to make mortgage. It does not mean that you should not use the facilities of payday loans. You may use the facility carefully so that you may not fall in deeper difficulties in life. Bank Payday Loans are no better alternative at all than any other payday loan.
The better alternatives of payday loans
You can maintain a savings account for hard times. For emergency expenses you should keep a credit card. You can get a signature loan from your bank. You can look for a suitable part time job to fulfill your desire in your practical life. Thus, you can earn more cash for increasing expenses in your daily life. So, you must think of how you will repay after taking payday loans though the payday loan industries try to convince people that payday loans are the easy way to get money.