Pay day loans or fast cash loans sometimes become necessary, but a thorough assessment of the plans available and pros and cons of each program must be carried before taking a decision. Pay day loans have several advantages and disadvantages.
Benefits of pay day loans are:
1. If you are confident that you can pay your dues on time, then payday loans are a great option for you. You can secure the amount you need immediately without putting too much pressure on yourself.
2. Anybody who is above the age of eighteen is eligible to take this loan. There are very few prerequisites for this type of loan, thus enabling a larger number of people to avail this service.
3. If you have a bad credit history and find yourself in a dilemma, especially concerning seeking institutions to lend you a loan, you can opt for a payday loan.
4. The competitive nature of the market will make sure that you find a lender within seventy-two hours from the time you place your request.
Disadvantages of payday loans:
1. Always pay close attention to the details of the agreement. If you are not able to pay back the amount in time, the interest rate will double the next time you have to pay. Interest rates start off at 10-30% which is already very high. Paying a rate that is twice will only create more problems for you.
2. You have only 30 days to repay your loan. Thus, making it too short a period for many people.
3. You need a fixed workplace and a fixed salary to get a payday loan. Thereby, driving people with unstable jobs to borrow money from unreliable and dangerous sources.
4. You need a checking account for your loan. If you can’t write a check, your loan cannot be processed by the lender.
Pay day loans have the ability to get you into a vicious cycle of debt and should, therefore, be thoroughly considered before making a decision.