Smart Borrowing – Getting the Cheapest Pay day Loans

If you are in constant need of money, you may be familiar with the term cash advance, or pay day loan. You may also be seeking the cheapest pay day loans to meet your financial needs. Such pay day loans can be advantageous to people earning a regular salary, especially if they have no money to meet the needs of a pressing issue. However, there are also disadvantages to securing a pay day loan, so you need to completely understand how pay day loans work before even seeking the cheapest pay day loans to pay off your debts.

What is a pay day loan or cash advance? In general, a pay day loan is a short-term loan of a small amount of money that is meant to take care of a borrower’s pressing expenses until the next coming pay day. In general, loans will range anywhere from a few hundreds, to a few thousand dollars. This money is borrowed on a half-month’s term, and at very high annualized interest rates. The cheapest pay day loans, therefore, will entail very low interest rates.

Why are pay day loans so attractive? Many of those who avail of pay day loans or cash advances come from the lower or lower-middle classes, and will usually be seeking to make ends meet by taking on more than one or two regular jobs. These persons will therefore have many financial obligations, such as rent, gas, other loans, tuition, and food for themselves or their children. Because they will have many different jobs, they can find it difficult to get a bank loan or a credit card, or any other alternative to a cash advance.

This same advantage attached to pay day loans is what makes them so disadvantageous to the same sector of society that benefits from them. Even if many workers seek the cheapest pay day loans, they will often be saddled with debts because of the high interest rates and their characteristically low-paying jobs. In fact, some critics of pay day loans claim that a borrower will be in a worse financial position than he or she was in before the loan, and that the borrower can be trapped in a vicious cycle of debt.

Traditionally, if borrowers do not pay off their loans on time, the person or store lending the money has the initiative to get the money from the checking account of the money borrower – this is possible, since many lending stores also require that borrowers give them a post-dated check that covers the entire loan along with interest and loan fees. If the check bounces, then woe to the borrower, as there will be even more fees to pay.

Seeking the cheapest pay day loans, therefore, can be useless if you are unable to pay the loan on time. Before seeking pay day loans, assess your finances and check if you can pay your loans on time. Sometimes, it can be better to borrow money from a friend than to have yourself tied down indefinitely to a pay day loan. Moreover, look at how much money you are borrowing, and see if you can spare something out of your next salary to pay it, and still have money left over for yourself.

If that seems to be a bit of a stretch, then forego pay day loans and look at alternatives. You can join credit unions, or apply for a debit card. You can ask for cash advances from your employer. You can also inquire at your local community center on emergency assistance plans that are available to people in your income bracket. There are even online lending marketplaces that can allow people to interact with each other and lend each other money.

If you are still interested in getting pay day loans, then you can find the cheapest pay day loans not in your neighborhood lending store, but by searching through as many lenders as possible. Think of it as a shopping trip for loans: you get the cheapest pay day loans by looking for as many merchants as you can, and settling for the lowest price, at the greatest convenience to you. You might also want to seek the advice of fellow employees who have experience in paying off pay day loans. They may be able to recommend you to reliable lenders who can offer you good deals on pay day loans.

Before you engage in borrowing and cash advances, take note of all the advantages and disadvantages attached to pay day loans. If your income is in danger, then you may want to find other methods to pay your debts. If you are in dire need and you have no other choice, then you can look for the cheapest pay day loans through your fellow employees or your own laborious searching.