When to Consider a Payday Loan
If you’re short on cash to make the payments you need to make for the month, you may not know exactly what you should do. And if you’ve been following the news, you may have seen the Time Magazine article on increasing fees for late payments. If you don’t want to be faced with that burden, you may want to consider a payday loan or even a personal loan from a service like Wonga loans. That way you can have enough money to make it through until your next paycheck comes in.
Is a Payday Loan Right For You?
The first thing you need to ask yourself is if a payday loan is right for you. A payday loan is a short term loan that typically has a term of 30 days or less. So, if you don’t know if you’ll be able to repay the loan in under 30 days, this may not be the right type of loan for you.
Also, you need to think about the fees involved in getting the loan. The amount you repay will include the original principal borrowed, plus interest and fees. So don’t just think about repaying the principal, but look at the total cost.
Finally, you have to make sure the money is in your account prior to repayment. If you’re not sure it will be, you may want to reconsider. The penalties for not repaying the loan on time can be significant.
Other Lending Options
So if you don’t think a payday loan is right for you, you may want to consider these other options. First, you can look at peer to peer lending. Peer to peer lending is online lending where other individuals fund your loan. You typically get higher loan amounts and longer repayment terms. This can give you some flexibility to repay the loan and be current.
Another option could be to get a collateral backed loan like a pawn loan. This is where you put up something you actually own as collateral. If you don’t pay the loan back, the broker will sell the item to get their money.
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