So you needed some extra cash and decided to apply for a payday loan. That’s not a bad idea as long as you’ve paid the loan back on time. Fast payday loans are great cash advances and can help anyone in need for extra cash. That all sounds great however, failing to pay the loan back on time, can be very unpleasant and expensive.
Taking a look at the payday loan rate
Depending on the amount you plan on borrowing, your repayment plan and the lender you decide to work with, the rates quoted range anywhere from 10% – 30%. Once you get the loan you have max 30 days to pay back the borrowed amount depending on your repayment plan.
For example; you decide to borrow $1000 for 14 days at a 15% rate making the interest you pay $150. In 14 days you will have to pay back $1150. If you fail to fulfill that payment the interest you have to pay doubles. Meaning that in 14 days from the last day of the initial repayment plan you will have to pay a total amount of $1300, eventually making this loan decision not a very wise one.
Who should apply for a payday loan?
If you need some cash to make an unexpected payment or for any use whatsoever no fax payday loans can be a good solution. People in debt are recommended not to use this type of loan as a debt consolidation program. If you are labeled as bad credit and need some extra cash a bad credit payday loan can be a loan option. The bottom line is, don’t apply for the loan if you aren’t positively sure you can pay the whole amount back on time!