Some are saying that online payday loans are the new credit card.
Which kind of makes sense. Millions of younger adults are saddled with school loans and other debt. They consequently find it hard to find a line of credit anywhere – from banks and credit card companies in particular. They might be working a good job and they budget themselves to the bone. But when an emergency expense hits, they need a cushion, a place to go to get extra cash. Payday loans are that place.
Payday loans offer options. If you work, you are eligible for a loan. It can be as small as $100 and as large as about $1500 (that much in certain states, but the total loan size is also dependent on the borrower’s wage rate or salary). The basic contract in these online cash advance loans is that you get a portion of your pay early, and then you repay the loan on your next payday through a pre-authorized automatic withdrawal.
Payday loans come in all shapes and sizes, of course. Some online cash advance lenders have lower interest rates but higher origination fees. Some offer the best deal if you pay it off in one paycheck, while others allow for amortized payments. So how does the borrower find the loan that best meets their needs? The Payday Place is an aggregator, which like travel websites combs the Internet to find deals that best meet yours. You would use this site for three reasons:
a.. You are busy – You could look up 10 or 20 or more online cash advance companies and study their terms. But you have a job and a life to manage.
a.. You need the best solution you can find – There is simply no reason to settle for a lesser loan. Online cash advances should be like anything else you shop for, the one company and product that best fits what you want and need.
a.. You need time to plan future financial solutions – With a simple, takes-10-minutes transaction, you buy yourself days or weeks of time to work on your budget, your income-outflow equations, such that you can plan for future emergency expenses.
Payday loans are to be taken seriously. That said, they can be a seriously important solution to the pressing problems of bills that are larger than your current bank balance.