Sunday, January 11, 2009

Why Payday Loans are for Emergencies Only

Payday loans are intended to help people pay off their debts in pressing situations. They are also intended to help people pay off late bills to avoid fees.

However, you should know that the fees on payday loans are often higher than fees on utility bills or phone bills. In most cases, the fees on energy bills are two dollars, while the payday loan fees are much higher.

There are lenders who will offer payday loans to first time consumers, offering $10 per $100. If you have late fees, even this amount is higher than usual fees on utilities.

Payday loans are useful from time to time, but payday loans can cause unresolved debt issues. You should stay wise to these loans. If you are using payday loans to stay afloat, you should adjust your behavior patterns, because some people have become addicted to the payday loans.

The addicted people experience bankruptcy, or went in debt so far, that it will take a lifetime to get back on their feet. Payday loans should not be used to support people; they are planned for emergency only.

A large number of lenders say that the loans are helpful for vacations, particularly if you need more cash. However, vacation is not an emergency. You need to plan ahead and save the cash needed for your vacation.

Car repairs are an emergency. If you use your car to travel to work, and your car breaks down, you are at risk of losing your job. At this point a payday loan could useful.

Emergencies such as charges on bank overdrafts are large; in this situation, you can choose payday loans. Put side by side the insufficient funds on overdrafts and the roll over on payday loans and you will find out that either way you will lose money.

However, if you can repay the loan after the two week pay date, you will save more by using a payday loan to repay your bank.

Alex Fir shares a wealth of information on his website Payday Cash Loan Guide. If you want to learn more about easy payday loans visit his site now.

Tags: cash advance, loan, payday cash loan

1 comment:

Unknown said...

I had to take my daughter to the Doctor, she had a really high fever. I had just paid my bills and had NO money left for the co-pay or prescriptions. I was told about Instant payday loans. I got approved in about 15 minutes, had the cash, and took my daughter to her doctor. It was a life saver!

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