Is A Payday Loan Really A Good Deal

By: Joseph Kenny
Submitted: 2007-01-17 16:17:29
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All of us have had those times when could simply use another couple of hundred dollars to get us by until the next paycheck. Financial tight spots can come unexpectedly. One way that might help you to cover those sudden needs or want of extra cash is by getting a payday cash loan. These loans are real easy to get. Here is a little more information to show you what is involved.

Easy To Get

A payday loan has got to be one of the easiest loans to get. Very little is needed in order to qualify. in many cases, you simply need to prove that you are at least 18 years old, have lived in one place for the last six months have a checking account, and make more than $1,000 (some say $1,500) per month.

No Credit Check Or Collateral

These things are real quick to apply for. No one is turned down who meets the basic requirements. There is no credit check since the money is actually deposited into your checking account - and then withdrawn from it, too. When you ask for the payday loan, you give them a check made out to them for the amount of the loan, with the interest added on to it. Then, if everything is in order, you will have the money in your account within 24 hours. No one checks your credit rating, or asks for any collateral. They will, however, look to see if you have any other outstanding payday loans - which will make the current loan null and void.

High Interest

Apart from being extremely convenient - you don't even have to fool around with a bill or a credit card, it sounds like just the thing. One problem, though, is that it may be too easy. All of us run into hard times, sometimes. For those who have a hard time controlling their finances, though, this could hurt them even more. For those who regularly run out of funds each month because they cannot control their finances quite like they should, this makes money too convenient, and the high interest on payday loans will make their money disappear even faster.

The interest on this type of loan comes to about $25 to $30 for every one hundred dollars of the loan. This interest is usually for a two-week period.

Can Be Rolled Over

After the first two weeks, the individual has the option to roll it over. This means extending it another two weeks - and another two weeks if needed. But with each two week period, the interest is again added. This means that after six weeks a $400 loan will cost $475. This is an awful high price to pay for a little convenience.

Quite possibly, a credit card may be the better deal, but you will have to decide on it for yourself. With the ads for payday loans all around us, that may be the first thing you think of when your funds fall a little short - but isn't that what the ads are all about?

Joe Kenny writes for the UK Loans Store for the latest UK loans and offer more information on UK payday loans and other loan topics available on site.
Visit Today: www.ukpersonalloanstore.co.uk

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