Bills become due or financial anomalies occur. The car breaks down or some other emergency happens that requires instant payment. Another scenario may be that you have set up pre-authorized debits to your account. They are due but payday is not due until a few days or a week after they will be paid automatically. Your accounts will not have enough money in the short term to cover your expenses. You want to know if Payday loans compare to other solutions for covering your cash shortfall.
You can overdraw your bank account overdraft. You know the bank is then going to penalize you. Any checks will be identified as NSF and all pre-authorized debits will be identified as NSF. An NSF check can cost you $45 just at your bank and then any retailer is going to bill you back for their losses as well. If you rack up 2 or 3 or these, it gets very expensive. Even one can cost you $100 total.
You can borrow from your credit card and take it over its maximum balance. In this case credit card companies are charging $40 for going over credit limits even if it is just the monthly interest charge that pushes your account over the credit limit.
You can write a bad check and make it right when Payday arrives. You incur the cost of the bad check both from the bank and from the retailer. You have committed fraud in most jurisdictions. And finally you will ruin your credit score or credit rating.
For Payday loans you go to the website of a good payday loan company and fill out the application form from your computer or your hand held device. They will tell you how much you can borrow. If you choose to move forward with the application, the best ones will approve or reject your application within 10 seconds. The money will be in your account the next business morning. You pay a fee for the transaction and/or you pay a fixed fee per $100 borrowed.
The three reasons you may choose this option is that it may be cheaper than the other options and it will save you time. Weigh out the costs of NSF charges or overdraft fees and interest and compare it to the amount you will pay the Payday loan company. In a lot of cases you save money by using the Payday loan option. On top of that your problem can be solved in 10 seconds after you have filled out the application. You are then free to go to work to take care of business worry free. The third positive is that once you pay the money back on time there are no further complications with the Payday loan company but you might have some going forward with the bank or credit card options even when you pay them back.
You can overdraw your bank account overdraft. You know the bank is then going to penalize you. Any checks will be identified as NSF and all pre-authorized debits will be identified as NSF. An NSF check can cost you $45 just at your bank and then any retailer is going to bill you back for their losses as well. If you rack up 2 or 3 or these, it gets very expensive. Even one can cost you $100 total.
You can borrow from your credit card and take it over its maximum balance. In this case credit card companies are charging $40 for going over credit limits even if it is just the monthly interest charge that pushes your account over the credit limit.
You can write a bad check and make it right when Payday arrives. You incur the cost of the bad check both from the bank and from the retailer. You have committed fraud in most jurisdictions. And finally you will ruin your credit score or credit rating.
For Payday loans you go to the website of a good payday loan company and fill out the application form from your computer or your hand held device. They will tell you how much you can borrow. If you choose to move forward with the application, the best ones will approve or reject your application within 10 seconds. The money will be in your account the next business morning. You pay a fee for the transaction and/or you pay a fixed fee per $100 borrowed.
The three reasons you may choose this option is that it may be cheaper than the other options and it will save you time. Weigh out the costs of NSF charges or overdraft fees and interest and compare it to the amount you will pay the Payday loan company. In a lot of cases you save money by using the Payday loan option. On top of that your problem can be solved in 10 seconds after you have filled out the application. You are then free to go to work to take care of business worry free. The third positive is that once you pay the money back on time there are no further complications with the Payday loan company but you might have some going forward with the bank or credit card options even when you pay them back.
About the Author:
Virgil Jones is a consultant in the area of personal finances. Virgil has writen for online ezines such as Money Saving Tips
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