Quick payday loans are a great solution for anyone that needs some money in between their paydays. You may have heard some hype about the high cost of the interest that is associated with this type of short term loan. You see the key here is the term “short term”. Since you are not taking out the loan for a long period of time with a long repayment term that “high interest rate” may work out to as low as $40, depending on the amount of your loan. There are a few other things you should know before you make a decision to take advantage of this great option.
- Banks charge more for returned or bounced checks
- Just because the interest rate is high doesn’t mean the payment will be
- You may have no other options
Your bank will likely charge you the same amount that you wind up paying in interest for quick payday loans. The difference is if you bounce a check at the bank, they will charge you a fee and will charge that fee without paying the check. You will get a fee from your bank and from the bank of the business that you wrote the check to. Sometimes those fees can easily add up to $100 and keep in mind the bill is still not paid and you have to go through the embarrassment of dealing with a returned payment. You will be charged the same amount in fees by your bank without getting anything at all in return. Your payment is not covered so you still owe it. The bank fees have to be paid (which the bank will take right out of your pay if you have direct deposit). The “high interest rate” that you pay on quick payday loans will be likely lower what you pay for return fees to the bank and your payment will be made!
The reality is that the bank may not offer you a loan to cover your immediate financial need. As a matter of fact, if your credit is bad, you may have very limited choices for finding a solution to your financial problem. The interest that you pay seems like a pretty low price to pay to have the cash that you need when you need it. You may actually save money with quick payday loans, if you take into account what the alternative could be.
