Payday Loans

Loans to See You Through To Payday

It's happened to me, and it's probably happened to you. You're one or two weeks short of your monthly payday, and your car engine blows up. Or your refrigerator dies. You may have enough money left over for basics like food and keeping a roof over your head, but you hadn't planned for this!

Well, you could try doing without until payday rolls around and then replace the dead appliance. This is possible but annoying in the case of a car (if you use public transport, pushbikes, carpools and feet), might be possible in the case of a washing machine (if you have enough clothes) but isn't quite so possible with a refrigerator. In this case, a payday loan is a solution that may work for you.

Payday loans are also handy if you've blown the budget and find that there's "too much month left at the end of the money."

Payday loans are short-term loans intended to tide the borrower over until their next payday. Payday loans are usually only for a two-week term. After these two weeks are up, the borrower is expected to repay their loan in full.

What happens with payday loans after the two weeks are up depends on what the borrower wants to do. If the principal on the loan isn't large, it may be possible to pay it off straight away. However, if you don't quite have enough to pay that payday loan off in full, then often the option of "flipping" or renewing the loan.

If you are considering payday loans, then you have to be very sure to read the fine print and know exactly what costs will be incurred with payday loans if you fail to repay them. The penalty fees and interest costs on payday loans can be quite stiff.

Payday loans are prohibited in some states because of this high interest and penalty rate. Other states have legislation in place limiting the amount of times that payday loans can be "flipped" or renewed.

If you are in a financial emergency and need a quick cash burst, then payday loans may be a good way to tide you over. However, you should be prudent and consider your ability to repay the loan. Payday loans should never be taken out for consumables (e.g. food - if you're that hard up, try a food bank) or for frivolous or unnecessary purchases. As with all loans, payday loans should only be taken out after careful thought and planning.