Consider the Options When Pondering a Payday Loan   by Paul Read

in Other    (submitted 2011-02-16)

Payday loans - quick and easy loans extended for the duration of a person's pay period - are hardly the only form of credit available to those who do not have a wallet full of gold and platinum credit cards (or a banker on speed-dial). Should someone find himself in a state of immediate need for cash, one can look to a number of other sources, some of which wind up being well short of a good idea.

Pawn Stars - Gee, How'd They Get So Rich?

Due to popular reality TV shows, pawn shops (and they way they do business) have finally been dragged out into the light. Television may make the pawnbroker out to be a kind soul, if a little hard-nosed, who helps people out when they're in a bind. Through selective editing, they manage to hide the truth of the matter: Pawnbrokers take your dreams away, giving you 15 cents on the dollar (or less) for what your treasures are truly worth. Need an extension to pay back the money? It costs more. Lost your pawn ticket? That costs more, too.

Give Me The Keys, Please

Another means of scrambling up money without the delays and assessments of your worthiness are title loans. Typically involving vehicle titles, these kinds of loans also charge what some would call exorbitant interest rates, and furthermore they get to own your car if you fail to pay them back on time. Laying out that sort of risk for a loan that you only need to get you through the week doesn't seem like the wisest choice of financial plans.

Payday loans, repayable at 15 to 20 percent interest, are a no-strings-attached form of credit that helps people avoid the real predator in the American economy: Your bank, which will be happy to collect from you an overdraft fee that could run as high as $35 per transaction. The experience is compounded by a smudge on your credit report. Payday loans keep you from getting painted into a corner by the very same people who are supposed to be watch-dogs for your money.

About the Author

Paul loves finance. He loves helping people with personal finance. Paul would like people to know that while there are many payday loans online to choose from. Buyer beware. Do your research and due diligence!