Payday Loans

Payday loans are short term loans that you can get through the rough. Before you use one, make sure you understand the costs and risks. This page gives a brief overview on how payday loans work and ideas on how to avoid them.
What are payday loans?
Payday loans are small loans you use when you can temporarily save money. Most payday loans are short term loans (two weeks or more) with a modest amount (several hundred euros). A payday loan, you normally write a check for the amount of your loan - plus shipping. You can leave a check with a lender, and their money, if you are willing to pay.
If you will not have to pay back your payday loan when due, you can "roll over", so that extended the loan. You do not have to pay back to them, but the fixed costs.
Cost payday loans
In general, payday loans very expensive. You end up paying an annual percentage rate (April), which can be several hundred percent. For example, you can borrow to pay a fee of $ 20 to $ 100.00 for two weeks. Consumer Federation of America has some good calculations payday loan compare with alternatives. This shows that you pay at 426 April% on payday loans.
Payday Loan Pitfalls
The main pitfall for loan payments is that they do not help in solving the problem. If you are in financial difficulties, to payday loans only exacerbate the problem. They pay very high interest rate that your spending will only rise means. As a short-term strategy - perhaps once or twice - payday loans can get through hard times. For example, you can emergency repairs to need your car, so you can work and earn a steady income. As a long-term strategy payday loan you will undergo.
You can get in trouble if things get out of control. Bounced checks that you write with the establishment of payday loans can end up on your ChexSystems file. Banks and retailers, then perhaps do not want to work with you. the lender may even accuse you or send you an account for the collection, which is to ding your credit.

    Basic Credit Score *
Alternatives to payday loans
Instead of using a payday loan consider some alternatives:

    * Create an emergency fund of cash in your savings account (sometimes easier said than done)
    * Wake up, so you borrow loans from major creditors (in moderation)
    * Save the credit card open for emergency expenses
    * Get a signature loan (or loans without collateral) from your bank or credit union
    * Take a part-time jobs for more money
    * Negotiate payment plans with your lender (ask about loan modification)
    * Explore the overdraft protection plan for your current account
    * Try to peer-to-hire service for a good deal peer
Survive payday loans
Payday loan industry is not ashamed to defend himself. They argue that payday loans can be cheaper than bounced check fees and overdraft protection programs. They also argue that payday loans are getting the best quick and easy way for some people for money.