By Martin Sumner
When budgets are tight and you're short of cash towards the end of the month, a payday loan can seem like the ideal answer, giving you enough money to see you through until you receive your next wage. Unfortunately, this can be too simplistic a view, and using payday loan facilities to paper over the cracks of a bad financial situation can make matters even worse, given the relatively high fees involved in short term, small dollar loans.
The fact that a typical payday loan will cost around 25% of the amount borrowed in fees, repayable within a period of a month or so of receiving the advance, means that in APR terms the cost can be astronomical even though the actual dollar amount may seem small. This means that potential borrowers need to think carefully about whether they really need a loan, as there are alternatives that may be a better option.
The major danger with payday loans is the temptation to use them to cover bills and allow a certain amount of living beyond your means. It's easy to fall into the trap of having to take out a new loan every |
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By Ajeet Khurana
 Each of us has to face a cash crunch at one time or another. No matter how good you are with your finances, there is no way of escaping from the occasional money problems. Going broke at the worst of times is something that each of us has to face. Thank heavens that in these days we are able to get a hold of loans of all kinds to pull us through the toughest of times.
In the years gone by, people only took loans because they wanted to buy a house, and sometimes because they needed to get a car. However, in the world of today, you do not have to give such excuses if you want to take a loan. Again, there was a time when banks were only comfortable with giving secured loans where a house or some other asset was made to serve as collateral for the loan. Even today, secured loans are easier to get a hold of. However, getting an unsecured loan has never been easier. You may have to pay a little more in terms of the interest on |
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