Payday loans are a quick loan option for those who are in urgent need of a small amount of money. The payday loan company manages to provide fast cash to anyone who has proof of a paycheck. The loan simply comes with an interest rate, or fee, that must be paid back when the payday arrives. While some utilize payday loans on a regular basis, others feel that the system is flawed, and that the interest rates for the loans are too high.
There are some benefits to these types of loans. Payday loans may simply be a necessary evil for those who run out of money. These people need the money to be able to pay their bills, pay off their debts in a timely manner, put gas in their car, and put food on their table. The loan simply gives them an advance on their paycheck, however, meaning that they unable to loan out for more than the paycheck is worth.
These cash advances can be both necessary and helpful to those in need of quick money. With that being said, they can also be somewhat detrimental to the finances of the individual pulling out the loan. Interest rates, often referred to as fees, differ from one company to another. There are some companies that will charge you $15 on a $100 cash advance. Those who are struggling with their money will only struggle further with their next paycheck, as they will lose that $15.
Payday loans should only be used as an emergency tool and aid. These loans have incredibly high fees and rates that can simply cause further issues for those already struggling to make ends meet. While the tool is incredibly helpful to those who are in need of cash, it should only be used as a last-ditch effort for basic needs.
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