There is a good and the bad side of everything. Every product has advantages and the disadvantages in different scenarios and for the different people. Same is the case with Payday loans. For some people, it might be very useful and good option, while for other it could be a nightmare. In this article, I will discuss the pros and cons of Payday loans.
Why are Payday Loans good?
Usually, for those people, who work in an office are doing a job in a company and get a fixed salary each month, it is difficult to cover all the expenses in the fixed pay. Sometimes it could happen that they need some extra money for their unexpected expenditures, like extra electricity or other utility bills in a month, or they need to pay the admission fee of their first kid for school. Any unexpected accident or unexpected illness and then they need extra money to pay for the medical checkup. It is not possible to cover all these unexpected expenses in fixed monthly salary, so Payday loans can be the only option for such people.
It is not possible to cover all these unexpected expenses in fixed monthly salary, so Payday loans can be the only option for such people. The best thing about these loans is that you can get the fast cash, usually, in just one day in your bank account without providing any guarantees except a banking account. Moreover, you can get these payday loans even if you have a bad credit history. So covering the unexpected expenses is only possible by getting a small and short-term loan that you can pay back on your next payday.
Why are Payday Loans bad option?
The interest rate which borrower needs to pay is very high. Sometimes it is almost twice as compared to the normal loans or it could be even ten times more than the rate which you have to pay in case you have a credit card. It becomes difficult to pay back the total amount (which includes the amount which you receive and the interest rate which you need to add in that amount) at your next pay because it is possible that you still need some money to cover unexpected expenditures.
In these situations, you need to extend the loan which also called rollover. Rolling over the loan means you can keep the lent amount for another period but you have to add more fees the next month. If this happens two or three times, then it becomes impossible to get out of debt.
How to make Payday loan secure
The best way to get secure online payday loans is to read your agreement which you sign while applying for a payday loan. Make it sure that there is no hidden fees or extra charges in the name of service charges or anything like this. Then you should also be aware of your state’s law and regulations. Usually, in American states Payday loans are illegal and if you get a short term online loan, while your state declared it as illegal, then you are not secure.
The most important thing, you need to get the fast cash payday loan from a reputed company so that your personal information should be safe and confidential and they should write this in agreement that they will not share your confidential information with anyone.