The Positives of Payday Loans
True, you need to be safe when using payday loans. OkeHampton Payday Loans is one option for safely get by an extra week or two before getting your paycheck. It means some financial stability in a time of economic downturns, when all of us need something extra once or twice a month. Before we go into the main positives of payday loans, let’s look at the prime negatives.
1. There are interest rates on the funds loaned.
2. The interest rates grow when payments are extended or “rolled over”.
3. Payday loans are counterproductive when used on a weekly basis.
4. You do need a verifiable job for most payday loan services.
There are interest rates on the funds loaned.
Typically, there will be an interest rate associated with your loan, and this interest rate is how payday loan services make the profits they require to stay in business. However, if borrowing $100 from a payday loan company like OkeHampton, you will see that you will pay an extra $15, sometimes less, on your next payday. Does that sound terrible? Not at all considering that late fees, bank overdrafts and other charges imposed by banks and creditors can easily exceed well over $35. The higher the loan amount, the larger the interest gained by the payday loan company. Payday loan systems are designed more to help you get by once a month and in emergencies, not as a long term advance on your paycheck.
The interest rates grow when payments are extended or “rolled over”.
Rolled over interest rates can pose a problem to those who fail to pay on time. However, if you are looking to return the funds within one or two weeks, this won’t ever be a concern. The positive is that the fees are typically low within one to two weeks.
Payday loans are counterproductive when used on a weekly basis.
Using payday loans on a weekly basis is not always a bad thing, especially if you are able to repay the loan without incurring roll over or extension fees. Payday loans only negatively affect those who abuse this service.
You don’t always need a job for payday loan services.
Different payday loan companies operate using different requirements. For instance, most will accept a $1,000 monthly income from disability or social security for example, in place of a job. So you don’t always need a job for a payday loan.
Payday loans allow you to save on bounced checks fees and company late fees which can well exceed the amount of fees you pay the payday loan company. This is the primary reason it’s advisable to use payday loans. If you are looking at several checks bouncing and late fees, sometimes in excess of $100, then a payday loan with half or sometimes even less than half of that fee looks much better.
In addition, with payday loans you can easily get enough money to last you up to two weeks prior to a paycheck allowing you to have cash on hand during tough economic times.
In the end, it’s about managing your money more. Sometimes that involves getting loans, which are a fact of life. There are just as many positives for payday loans as negatives.
--This information was provided by OkeHampton Payday Loans, OkeHampton.net