Every time an individual considers making a purchase or do any other activity for that matter, one of the questions that crop up is “Is it worth it?” Is this thing or activity going to compensate for the time, effort, or resources that I am going to expend on it? The same thing goes for payday loans. When one thinks about taking out a payday loan, one can’t help but ask, “Is it worth it?”
What do you think?
An online payday loan no credit check is just like another other type of loan, in the sense that it will give you the amount of money that you need. In addition to that, a payday loan – just like any other loan – has to be paid back within a specified amount of time, PLUS interest or charges. I suppose the last two considerations are the factors that will ultimately determine if a payday loan is worth it or not.
So what is the normal period of time that a payday loan has to be paid back? This really varies from one payday loan provider to another. However, since it is the borrower’s pay cheque that is being used as security here, it is logical to assume that you have to pay back – at least in part – the payday loan on your next payday. That would be anywhere from a week to 2 weeks from the date your payday loan release. This period can extend to about a month or so. For example, bad credit payday loans provider GshLoans also offer the option of extended payment – more than the normal period of time – but this usually means higher applicable charges.
Speaking of charges, how do payday loan providers charge their fees (COVID)? This is one point wherein conventional loans and payday loans differ greatly. If you have ever tried shopping around for a conventional loan, you would know that lenders advertise their products using APRs, or the Annual Percentage Rate. This figure can be quite confusing – even people in the lending business admit to this fact. APRs are calculated differently by different groups so sometimes, they are really not a good measure of comparison. On the other hand, payday loan lenders do not work with APRs. Instead, they ask for fixed charges for every certain amount borrowed. If an individual borrows $100, for example, he will be charged a fee of $10. Double that amount to $200 and the borrower has to pay $20 in fees. Now this fee varies from one lender to another but you can expect it to play around $10-$30.
Knowing these things, do you think that a payday loan is worth it? I would say that you can fully appreciate a payday loan’s worth if you find one that has good repayment terms – a period that you can handle and a reasonable charge. Add to these things the fact that you can get a payday loan very easily (anywhere where there is a computer and an Internet connection) and quickly (get your cash within a day or two), I would say that for meeting URGENT needs, a payday loan is definitely worth it. What do you think? 🙂…
Before I say anything else, let me emphasize the fact that no payday loan borrower should ever have to face the situation wherein he has to resort to the consolidation of his payday loan debt. This is not the default choice. Why do I say this? Simply because of the fact that, if used properly, payday loans should HELP you get through emergency financial situations and NOT place you in a deeper financial problem. The operative words here are SHOULD and IF USED PROPERLY.