Payday Loans Advantages

Good Essays
Before you start looking for a payday loan, you should stop and give consideration to getting a personal loan. There are certain advantages that a personal loan has over a payday loan, and you may find one to be a good fit with your personal finances.

Personal loans are easier to budget for
For most people, a payday loan is simply an advance on their next paycheck. But it is easy to forget about a future expense, and you may not have enough money in your next paycheck to pay off your loan. If you contact the lender before the due date they are likely to roll over the loan, but his makes the payday loan more expensive. With a personal loan, there is a single monthly payments that represents a much lower percentage of your paycheck; therefore there is less chance of falling behind and incurring additional fees and other charges.

Larger loans are available
Although the amount that you can borrow will vary from one payday lender to the next, it is almost always held to a certain percentage of your paycheck, and this will
…show more content…
Payday lenders seldom report to a credit agency when you pay back a loan on time. This is mostly because it is a one shot deal. You borrow, then pay it all back in one lump-sum payment. Of course, if you fail to pay it back the cash advance, you will be reported to a credit agency, just like any other lender, but the thing to remember is that there is no upside to a payday loan when attempting to build up your credit.

Take the time to look for personal loans that are available to you, and compare them to a payday loan; you may be surprised at what you qualify for. There are many lenders that offer both payday and personal loans. Remember, personal loans are easily distinguished by installment payments versus a single

Related Documents

  • Decent Essays

    Hustling some money on the side form selling things you do not need, babysitting, or doing odd jobs for friends or neighbors are quick cash to add on to your payments. Any bit of extra to lower the principle will help. *Stop using your credit cards. Paying down your debt but creating more on another card defeats the purpose. Tuck them away and keep from using them while you work at ridding yourself of debt.…

    • 713 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    A consolidation plan may be able to cut down the monthly installments to a figure that you can comfortably spend per month. However others are better off just using the original repayment plans. If you can pay off monthly installment without any pressure, there is simply no reason to consolidate your debts. Investors can also take loans from different loaning institutions to start an income generating project that can pay off monthly installments in a consolidated debt plan for all the years therein. The benefits of consolidating your loans are quite obvious and straightforward.…

    • 734 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Monthly finance charges, fees, and penalties can become quite costly over time. However, there are a few ways to save on your credit card bill. Use credit cards only if you have the money to pay off the balance. If you stick to using credit only for things you can already afford, you will not run the risk of carrying balances from month to month. Although this is much easier said than done, consider the…

    • 851 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Especially for new entrepreneurs, time is precious when they need money. (Brett Child, 2011) Secondly is less cost of loans and lower interest rate. For instance, if company borrows money through Prosper (a P2P platform), they only charge origination fee to process the loan. On the contrast, banks will charge different kinds of fees, like transaction fee and security fee. (Laura Woods, 2015) Contrary to bank and credit cards, P2P provides lower interest rate.…

    • 1002 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Credit Cards And Debt

    • 723 Words
    • 3 Pages

    This is additional money that the cardholder must pay if they can not pay the bill in full. How much the finance charge is depends on the amount unpaid and the interest rate of the credit card. Also, a credit card bill has late fees if paid late just like any other bill. Annual fees, finance charges, and late fees are the fees that may lead a cardholder into debt, but those fees are not everything a cardholder has to worry about. Credit cards also come with an interest rate.…

    • 723 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Although defined benefit plans are better for an individual employee, defined contribution pensions are better for a nation because what an individual puts into their plan, is what he or she gets upon retirement. Therefore, defined contribution pensions reduce costs to employers, taxpayers, and shareholders. Many Americans save too little, but one can break away from the statistics to build a financially secure retirement plan by in the beginning of their careers by using a 401(k) or an IRA. It is better to look forward to retirement with a peace of mind knowing there is a monthly paycheck than working the rest of one’s life without relaxation. Start looking into retirement plans now; you will be glad you did in the…

    • 1188 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    One of the disadvantages is the credit rate would be affected. The creditors do not have to accept payment offers (Lazarony). Also, reducing payments to the debt would result in an extended repayment period, increasing the total amount to be repaired (Lazarony). When someone starts a debt management plan, it’ll take longer for the debt to clear. Also, some might pay more because lenders do not have to stop adding interest and charges to the account.…

    • 838 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    In both options, a small percentage of money will be taken from the workers’ paycheck and will be put into an account. While social security may run out, a private pension will not. This means that the worker will be guaranteed access to their money that has been put in a fund specifically for them. The main difference between the two is that there is more security in choosing a private pension plan rather than social security. In a private pension plan, a person knows how much money they will have when they retire, and can add more money if they would…

    • 847 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Personal Finance Tool

    • 1060 Words
    • 5 Pages

    Now minus the Total Liabilities from the Total Assets When a business gets a negative number they have to increase their income, cut expenses, or borrow money to stay operational. With personal finance, the outcome is the same, except borrowing more money should not be one of the options. Now, refer to the discretionary money number that you calculated earlier. Does the number have more clarity now? Just like a business, long term assets can be sold to add cash to the short term assets, and long term liabilities can be retired quicker with cuts in short term liabilities.…

    • 1060 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Consolidation is merging all your debts into a single container. If, your current monthly payment under a debt consolidation loan seems smaller, it could happen because of the longer period of the loan, which means you could potentially pay greater interest than ever…

    • 387 Words
    • 2 Pages
    Decent Essays