Pros and Cons of Payday Loans

If you need money fast, then you might be considering a payday loan. Payday loans are a relatively new way to get quick cash and can be a saving grace for people who don't have any other means of getting the emergency funds they need. Let's say your car breaks down and you have no savings to pay for repairs. In this case, one of these loans could provide you with the money you need to get your car back on the road.

You may also hear these loans referred to as cash advance loans. There are many different establishments popping up all over the place, both online and at physical locations. One good thing about this type of loan is that there is no credit check. That means if you have bad credit, you can still get a loan even when a bank, credit union or other financial establishment refuses to give you one. There are some things that these companies normally check, however. Because they want to make sure you will be able to repay them, your income will probably be verified. You can provide check stubs, or have your employer write a letter stating how much you make each month.

Another thing these companies may need is a few references. You can often use friends and family members as references. Sometimes they call them before giving your loan, other times they only call if they are having trouble collecting payment and cannot reach you. Which brings us to one of the drawbacks of these loans -- paying them back!

Let's say you take out a loan that requires an initial $20 fee for every $100 borrowed. If you borrowed $500, you'd end up paying a total of $600 when your loan came due, usually in one week. But suppose you didn't have $600 in one week? You can often choose to renew the loan and pay the interest charges only. The thing is, the longer the loan remains unpaid, the higher the interest charges go. It's not uncommon for the annual percentage rate on one of these loans to go as high as 600 percent!

All in all, payday loans are helpful if you have no other way to obtain the cash you need. The smartest thing you can do if you decide to get one of these loans is to read all the fine print, understand all the fees you'll be liable for, and pay the loan back as quickly as you possibly can to avoid extravagant interest charges.

Copyright 2006 Jim Sterling - All Rights Reserved

Payday Loan News:
British Payday Lenders Are Under Fire For Promoting Plastic Surgery Loans - Business Insider

Business Insider
British Payday Lenders Are Under Fire For Promoting Plastic Surgery Loans
Business Insider
In the US, nonbanking services like payday lenders, pawn shops and debt collectors, have become a core part in the Consumer Financial Protection Bureau's mission to help consumers. Nearly 20 million Americans use payday loans, and many have allegedly .

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Backing for TV ban on payday loans - The Independent

Backing for TV ban on payday loans
The Independent
Almost as many people think payday loans should be barred from advertising on television as those who agree with the existing ban on cigarette ads. A survey by YouGov found 75 per cent of respondents want the expensive loans kept away from TV, .

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Instant money loans: Payday loan firms are ruining lives
And the payday loans industry, which is now worth 2EUR‰billion in the UK, is spending millions of pounds to woo young, working women who are feeling the pinch...

CashAdvance.com Presents Free Educational Kentucky Loan Process Resource - SBWire (press release)

CashAdvance.com Presents Free Educational Kentucky Loan Process Resource
SBWire (press release)
Los Angeles, CA -- (SBWIRE) -- 02/07/2012 -- The payday loan industry in Kentucky continues to grow and aid consumers who need help with their finances. CashAdvance.com is pleased to announce the launch of the Kentucky Loan Process page.

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Payday loans: A time and a place - Foster's Daily Democrat

Payday loans: A time and a place
Foster's Daily Democrat
John Lynch's recent veto of SB 160 which would reinstate the payday loan industry in New Hampshire strikes us as a bit odd. The main complaint of payday loan opponents is that the effective interest rates on these loans are usury.

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Payday loans may outstrip credit cards EUR PwC
PwC warns mainstream lenders that customers are being increasingly drawn towards 'smaller, more agile loan providers' Payday lenders could overtake credit cards and become a mainstream method of borrowing, a report by one of the UK's leading accountancy firms has warned. PricewaterhouseCoopers (PwC) said that consumers unable to borrow from traditional lenders, including credit card companies ...

Senator seeks to alter payday loan rules - Columbia Daily Tribune

Mortgage Introducer
Senator seeks to alter payday loan rules
Columbia Daily Tribune
Lamping told the Financial and Governmental Organizations and Elections Committee he wants to address the aspects of payday lending that can trap unwary borrowers. Most borrowers using the high-cost credit use it responsibly, he noted, .
Mo. senator calls for changes to payday loan lawsCBS News
Ferratum warns against rogue payday loan firmsMortgage Introducer
Senator calls for changes to payday loan lawsSoutheast Missourian
SBWire (press release)
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Announcing the Launch of Online Payday Loans EUR A Safety Net Guide to Loans and Borrowing
Payday loans online is a rapidly expanding market in the UK. The launch of Online Payday Loans aims to keep the public better informed of the ins and outs of every lender and every type of deal. OPL will also be offering exclusive reductions.Bath (PRWEB UK) 24 January 2012 With so much attention focused on short-term borrowing, there has been so many unanswered questions on the whole concept ...

Group pushes misinformation about payday loan initiative - People's World

Group pushes misinformation about payday loan initiative
People's World
LOUIS - As this year's elections cycle kicks into overdrive, the Missouri ballot initiative to cap payday loan interest rates at 36 percent is getting a lot of attention from an unscrupulous, pro-industry organization. "Missourians for Equal Credit .

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3 Tips For Using Payday Loans
With payday loans now operating across 41 states, we tell you how to use them wisely and responsibly...

Payday loan company targets pet owners - The Guardian

The Guardian
Payday loan company targets pet owners
The Guardian
Now it is pet owners struggling with unexpected vet bills who are being offered instant short-term loans with eye-watering interest rates. Petloan.co.uk is a new arrival to the fast-expanding payday loans sector, and claims to be "the UK's only .

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State senator calls for changes to Missouri laws on payday loan
Missourians who take out payday loans could get more time to pay them off, under legislation put forth by a state senator...

Online Venue For Payday Loans Online Q&A Announced By USAPaydayForever.com
The Venue For USAPaydayForever.coms Payday Loans Online Q&A Session Has Been Announced. They Will Be Hosting The Event On Their Facebook Group Page(PRWEB) January 28, 2012 Today, USAPaydayForever.com has finally released the place for their payday loans online question and answer session. The place they have decided upon to do this question and answer session has to do with their online social ...

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