The American Consumer And Payday Loans

The American Consumer And Payday Loans

The American Consumer And Payday Loans
Online payday loans are just one of​ many credit options available to​ ordinary Americans to​ manage their finances .​
Before you​ use one of​ these products you​ should learn something about them .​
you​ should know what they are for,​ and especially,​ what they are not for .​
you​ should be aware of​ the​ costs of​ such products,​ how to​ use them sensibly,​ how to​ minimize any charges,​ how to​ tell rogue lenders from bona fide companies and then decide if​ this product is​ indeed for you.
Online cash advances or​ payday loans,​ are products designed to​ cover short term debt problems .​
They are usually for small amounts ($100 to​ $500) and cover a​ period of​ two to​ four weeks which is​ essentially the​ time frame needed for an​ advance on​ your paycheck to​ cover an​ unexpected short term lack of​ cash .​
They do not claim to​ be,​ and are not,​ a​ long term solution to​ large financial problems .​
Neither should they be used for holiday expenses,​ shopping sprees or​ totally unnecessary spending .​
If they are used for any of​ these purposes then they will cause debt problems instead of​ solving them .​
If used sensibly,​ they can save you​ money,​ embarrassment and credit rating problems.
Like all unsecured,​ short term credit products,​ a​ faxless cash advance can seem expensive in​ comparison to​ long term loans .​
In APR terms,​ depending on​ which lender you​ choose,​ rates can be as​ low as​ 300% to​ highs of​ over 500% .​
This figure seems high,​ but if​ late payment charges and bounced check charges are converted to​ APR terms,​ they are measured in​ thousands percent .​
Check the​ dollar figures from lenders,​ since these can vary from $10 per $100 borrowed to​ $20 and $30 per $100.
Sensible use of​ these products can also cut down on​ the​ charges .​
Some lenders are very flexible,​ allowing early repayment with pro rata charges,​ others are not so flexible,​ so choose your lender carefully .​
Most firms allow roll over options,​ but you​ should be aware that these can double the​ charges .​
you​ should use roll over options sparingly and avoid lenders that encourage you​ to​ roll over .​
The advent of​ the​ Internet and the​ availability of​ faxless payday loans have encouraged a​ lot of​ rogue players to​ enter the​ market .​
Some of​ these will have very high charges (over $10/$100 borrowed) or​ have inflexible payback terms .​
Avoid these .​
Choose a​ lender with low charges and flexible pay back terms.
An online payday loan can be a​ boon to​ ordinary people .​
Although borrowing from friends can seem financially less expensive,​ in​ the​ long term it​ can prove very expensive in​ terms of​ friendship .​
Used sensibly and sparingly they will save you​ embarrassment,​ expensive bank charges and trouble with your credit history.

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