subject: Payday Loan - Dangerous or Not? [print this page] Payday Loan - Dangerous or Not? Payday Loan - Dangerous or Not?
The best solution to our financial problem is to know our income budget it, save like 10% to 20% of it and spend the remaining wisely. It's hard to do it, especially when you see some stuff you want and you want them badly: then you decided to spend your savings on it. What if someone got sick or you have unexpected high bill? What would you do? You can go and check for other means of getting money. Here are some options:
You can ask for family members or friends' help- the best option, since it's not going to cost you any interest. You can file a bank loan- they give lower interest rate compared to other; however, it might take tame and will ask you for some requirements. Apply for a Payday loan- it has high interest, but you can have the money within 24hrs hassle free.
You may want to apply for a Payday loan, and I'm sure you would want to ask yourself if it's safe to do it. I can say it's safer compared to other financial institution because they do not report to credit bureau, no collateral and its easy approval. The dangerous side is they have a higher interest rate; it's giving people other option to spend more than their means. It's a bit intriguing, you can't change one's attitude, but you can help them to be safe. In fact, payday loan is designed to cover financial needs until the next payday.
Payday loan makes money when their customer repays the loan, not by keeping them in debt longer. Just an insight, Credit card companies make the most of their money from customers who just able to pay the minimum every month. And payday makes most of theirs, by rolling over to the next payday- that is if customer is willing to pay the said amount.
Payday loan is charging higher interest rate, simply because it is high risk and I think it gives customer quicker access to cash than any other lending company or industry. It's the same as a town car is going to charge you big-time than a cab. They prefer a customer who pays on time, because that is how they make profit and not by extending it.
If it's dangerous or not, my answer is it depends. If the borrower is responsible, then they don't have to worry. If not, think again.
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