When you’re short on cash, unexpected expenses can happen unexpectedly. There’s a chance you’ve experienced this, a flat tire on your car, a broken air conditioning unit, or even an unexpected trip to the emergency room. This is where short-term loans can be helpful for some people. They are a quick fix to pay the immediate bills to help you get through to your next paycheck. On the surface, payday loans can sound great, but it’s important to find out what this type of short-term loan entails and whether it’s right for you.
How do Payday Loans Work?
A payday loan is a small loan intended to meet your urgent cash needs until you receive your next payment. Specialty lenders, both online and in-store, offer these loans with a simple approval process. You give them a dated check that says when you will be paid or they can access your bank account. This allows them to recover the loan amount plus fees and interest from your paycheck. They usually only lend a portion of what you earn. Here’s the tricky part when it comes to short-term loans like a payday loan- they’re much more expensive than conventional loans. Interest rates can be up to 400%, much higher than other forms of loans. The reason lenders say they justify these high costs because these loans have shorter maturities and are riskier for lenders. In addition to interest, you may also have to pay additional fees, such as to initiate a loan or make a late payment. Make sure you are fully aware of its cost before deciding.
Is a short-term loan right for you? Before you make your final decision, it may not be a bad idea to review all of the details before committing. Here are a few things to consider:
Is it urgent? Are you really in trouble or could the expense wait until you get paid? If you can wait, it might be better so you can avoid paying high interest rates.
What is the total cost of the loan? Compare the cost of the loan with the help it gives you. If the cost of the loan is less than what you would pay if you missed your bills, the loan could be worth it.
Do you have any other options? Is there any other way for you to make money to pay for the unplanned expense? You can borrow from family or friends, talk to a bank, or get help from local groups. In addition to these options, Liquid Loans offers a no credit check personal loan which many of our customers prefer when compared to a payday loan. The application process is quick, and you can get the money you need in the same day.
Have a plan in place if you get the loan. Can you repay the loan on time? Otherwise, you may end up paying extra fees. Have a plan for how you will pay that money back. Also it may be important to be mindful of your credit. These loans may not show up on your credit report, but if you things go wrong and you’re unable to pay them back, it can still hurt your financial record.
The problem with payday loans is that they can become a financial headache if you’re not careful. In order to avoid getting into trouble with getting a loan, we recommend to borrow only what you really need. Have a solid plan in place to determine how you will pay back the money borrowed before you even get the loan. Carefully consider any other options if paying off debt seems difficult for you. Learn how to manage your money better to avoid more problems. When in doubt, you can call an expert at Liquid Loans to see which options are available to you.
Short-term loans can be a quick solution to financial emergencies, but they can also lead to more problems if you’re not careful. Remember to think about the urgency of the situation, calculate the costs, and consider other options before you take action. Taking responsibility when borrowing money is extremely important to keep your finances healthy.
Liquid Loans in Murray
The Liquid Loans team is conveniently located at 6542 S. State Street, Murray, Utah. You can visit us in person or you can call us and we’ll be glad to walk you through the easy process of getting a loan. Give us a call today to explore your options, there’s no obligation. 385-425-3641