Payday Loans Pros And Cons
Benefits of Payday Loans
When it comes to payday loans, there are both benefits and disadvantages associated with them. It is imperative that an individual become educated and aware of both the pros and cons before signing up and applying for one or more payday loans. In fully understanding both the pros and cons the applicant can make informed and knowledgeable decisions during and after the application process.
Pros of Payday Loans
When applying for payday loans, (also commonly called a cash advance), one can immediately begin to see the pros associated with getting a payday loan. First, payday loans are accessible in amounts up to as much as $1000.00, and you can receive the money within a few minutes to 24 hours time. That is a …show more content…
Online applications are fast and only take a few minutes to fill out completely. You may or may not require additional documentation, depending on what payday loan lender you have.
Cons of Payday Loans
There are plenty of advantages associated with payday loan options, but there are disadvantages too. For one thing, the interest and fees applied to payday loans are pretty high: as much as $15 to $25 on every $100.00 that the individual borrows. If the borrower asks for an extension, the interest rate is even higher. The high-interest rates are applied because payday lending is a risky business and it is, unfortunately, a business where many borrowers do not pay loans back on time and default on loan obligations. Nonpayment also equals harsh consequences in terms of additional fees and potential criminal charges.
Digging a deep hole of debt with payday loans is easy. It is not uncommon for borrowers to repeatedly turn to payday loan lending options to start getting more and more loans to make ends meet. Each loan has high interest, so the borrower loses out in the long run. If you're considering to take an advance loan, you must thoughtfully look at the pros as well as the cons of
When it comes to payday loans, there are both benefits and disadvantages associated with them. It is imperative that an individual become educated and aware of both the pros and cons before signing up and applying for one or more payday loans. In fully understanding both the pros and cons the applicant can make informed and knowledgeable decisions during and after the application process.
Pros of Payday Loans
When applying for payday loans, (also commonly called a cash advance), one can immediately begin to see the pros associated with getting a payday loan. First, payday loans are accessible in amounts up to as much as $1000.00, and you can receive the money within a few minutes to 24 hours time. That is a …show more content…
Online applications are fast and only take a few minutes to fill out completely. You may or may not require additional documentation, depending on what payday loan lender you have.
Cons of Payday Loans
There are plenty of advantages associated with payday loan options, but there are disadvantages too. For one thing, the interest and fees applied to payday loans are pretty high: as much as $15 to $25 on every $100.00 that the individual borrows. If the borrower asks for an extension, the interest rate is even higher. The high-interest rates are applied because payday lending is a risky business and it is, unfortunately, a business where many borrowers do not pay loans back on time and default on loan obligations. Nonpayment also equals harsh consequences in terms of additional fees and potential criminal charges.
Digging a deep hole of debt with payday loans is easy. It is not uncommon for borrowers to repeatedly turn to payday loan lending options to start getting more and more loans to make ends meet. Each loan has high interest, so the borrower loses out in the long run. If you're considering to take an advance loan, you must thoughtfully look at the pros as well as the cons of