Is There A Benefit To Payday Loans?

by Pam on September 12, 2013

can you benefit from payday loansHow many times have you driven down the street and seen a payday loan building? I ask this because these places are almost everywhere and the truth is that they keep popping up. The reason for this is because more and more people are using them as their go-to source for fast cash. What you need to understand about this is a payday loan is both good and bad; it just depends on why you are looking into this option.

Do you know the true benefit of a payday loan?

The true benefit of a payday loan is that you can get them even without good credit. If you have ever gone to the bank and tried to get a loan, then you know that sometimes your credit will prevent you from securing any money. It is because of this that more and more people are heading to payday loan businesses for their money.  Keep in mind, though, that is benefit is a double edged sword.

Payday loans are convenient.

There is also one other benefit that you might not be aware of in regards to payday loans – They can be secured online. The nice thing about a payday loan in today’s economy is that you don’t have to rush to the local loan place to get one; you just have to find an online loan approval site and enter your information. This makes the lending process that much more convenient and enticing.  Again, this benefit could also be considered a double edged sword.

My thoughts:  If you can avoid getting a payday loan altogether, then you will be better off. I say this because a payday loan usually has extremely high interest rates associated with it.   You could end up paying A LOT more than you initially borrowed.

As you probably already know, payday loans are not the best thing to get and that is why I highly recommend you do anything in your power to avoid getting one. What most people don’t realize is that payday loans are not just for people that need money; they are specifically for people who need their paycheck a few days early.   This means that these folks are most likely living from paycheck to paycheck.  The key to never having to apply for a payday loan is to learn how to stop living like that and learn instead how to become more financially savvy.  This blog has many articles about that if you are interested in learning more about how to work towards financial freedom.

So, if you are contemplating getting a payday loan, then just make sure you weigh the pros and cons of getting one.  Make sure you understand the terms and conditions, and make sure you have considered all other options available.  If you are looking for money quickly, you likely have a good reason for it, but don’t be too hasty in making a decision that you may regret.

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Lee Veldkamp September 17, 2013 at 9:13 am

I would advise anyone to never get a payday loan. The interest rates are 500% normally. It is ludicrous. You are throwing your money away constantly. If you really really need a little extra money before your next paycheck, then make a deal with whom you owe money with. Tell them you can’t pay. Another option would be to mow some peoples lawns like you were a kid. Just don’t have it in your mind that these places are a option because then you want go.

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