Payday Loans-meeting Your Dire Financial Needs

Payday loans are known by different names. Often referred to as “cash advances” or “costly cash” as named by Federal Trade Commission in the United States, the payday loans can save you if you are financially stranded. You may have to pay for a medical emergency or travel to some distance place for an emergency; you can depend on payday loans for all such financial needs. Payday loans are availed for a short term and attract very high rate of interest.

You can get these loans from a payday loan store. There are more than 10,000 payday loan outlets in the United States. In the event you don’t come across a payday loan store near you, try out the World Wide Web. Internet payday loans are not uncommon. Many avail these loans online. There is one advantage of shopping for these loans online. Every payday loan lender has a website (mostly); you can compare rates and settle for the right lender.

A word of caution, payday lenders are not legal in all the states. And the norms governing these loans differ from one state to another. So, before you settle for a payday loan lender, just make it a point that the lender is genuine and has a legal status of operating in that particular state. Since the number of fraudulent activities involving payday loan lenders has increased over the years; these loans are governed by strict rules.

Why will you take out a payday loan? In addition to the fact that it helps you in financial crisis, there are few other reasons why you can opt for payday loans. They are as follows-

• In majority of the cases you don’t have to go through a credit check.
• The loan amount is credited into your account within 24 hours.
• You are not required to pay upfront fees
• The loan is easily available
• You need to interact directly with the lenders. No intermediates.
• You have the facility of applying for the loan over the phone, by visiting the store personally or browsing online.

Why do some people shy away from payday loans? Payday loans can help the financially distressed for a short period. However, what if you are not able to pay back the loan within the time specified? Well, you may say that these loans can be “rolled over”. In other words, the tenure of your loan can be extended. It is a well known fact that payday loans have a very high interest rate. If you rollover these loans, the interest rate goes on increasing. By the time you finally pay back the loan, you will have paid several times more than what you had taken. If you can manage your finances well, you can build an emergency fund and pay from it rather than paying for a loan that has grown manifold over the weeks.