Tuesday, July 14, 2009

Pros and Cons Of Payday Advances

Before you decide whether or not a payday advance is apt for your needs, it is important that you weigh the pros and cons of payday advances carefully. In other words advantages and disadvantages are studied. Take a look at payday advance.

Advantages can be summarized as follows:
" Hassle of long term loans, procedures and formalities are avoided by receiving a cash advance.
" Credit card rating is not affected by payday advances.
" The finance terms can be discussed with your lender.

Summarized below are the disadvantages:
" Very high interest rates make them unsuitable for long term loans.
" The poor income sectors consider it as money drainer.
" Ignores legal lending rules.


A detailed study of pros and cons of payday loans

Very often we are found by ourselves strapped for cash in today's fast paced and expensive world. Emergencies that occur between paychecks are dealt by getting the payday advance. The economy forces many people to live from one paycheck to the next and makes it impossible to save any money. If you are found in this predicament, be comfortable as you are not alone and the needed money for you is obtained by many ways. Taking out a payday advance may be your answer.

There are pros and cons associated with payday advances or short term loans which are to be aware of before taking decision on it.

The PROS include but are not limited to:

" Credit checks are not required
" Loan application process is very easy
" Turn around time on approval is quick - no time delays
" A steady job and valid checking account are the simple requirements
" Your security is hassle free.
" Very easy payback method
" Simple and easy method of getting cash to cover emergencies

The CONS include but are not limited to:

" Very high interest rates - the lending fee can range from ten to thirty dollars on every hundred borrowed
" Fourteen to thirty days short-term loans are primarily run.
" Loan extension is a costly business
" In the event of non-payment debt collection methods are extremely harsh

Short term monetary requirements are covered by payday advances, which is your very purpose. Hence the fees are high and extending the agreement is so costly. For long periods of time it becomes unsuitable. They are designed to be used as a way to get the extra cash you need to make it until your next paycheck. They are not designed for vacations or buying items that you don't need. Responsible adults who are faced with an emergency that requires them to have cash now not in a few days or weeks can use payday advance. When used correctly they can be extremely beneficial. Read more at Payday Advances: Criticism and Controversy


Having a better understanding of what a cash advance loan is and how they work, informed decision can be made when you are trying to decide if it would be the right option for you. Payday advances do carry a higher interest rate than many other types of loans. When a financial emergency is faced by you, having access to cash when you need it can be well worth the interest and fees charged.