If you've ever been seriously short of cash, you may have considered a "Payday" or "Quick Cash" loan. Because most of these type of loans don't require a credit check, they can seem an enticing solution. But is this type of loan right for you? Maybe, and maybe not. Consider:
--If you are overdrawn at the bank or getting hit with serious late fees, a Payday loan can occasionally help to bail you out. But discipline is the key. You must be serious about paying it back by the due date or you will get killed by the interest.
--Qualifying for these loans almost always requires a verification of employment. If you don't have a job that issues regular paychecks and can be verified, you're probably out of luck.
--If you have even decent credit, you can probably find a loan with much better terms through more traditional avenues. (See the article on online loans from The Prosper Marketplace elsewhere on this blog.)
--Pawning, or better yet, selling an item is almost always a better idea. Not only do you save the interest, but you don't "owe" anyone anything. And you can likely buy the item back when times are better.
--This blog contains many articles on other ways to raise fast cash without borrowing. It's always best to use Payday loans as a last resort!
To Borrow Or Not To Borrow - The Lowdown on Payday Loans, Personal Loans, Cash Advances, etc.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment