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a Checking account. |
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| I receive my paycheck by
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| I take home
per month. |
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| I have
returned items or overdrafts on my last bank statement. |
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Payday Loan
Wegivecash.com has been in business since 2003 offering payday loans designed
to meet a short-term cash emergency such as a car repair or a medical need. The
term is referred to as "payday" because the loan is intended to cover a borrower's
expenses until his or her next payday. The amount of a small unsecured loan can
usually fall between $100 and $1500. In comparison to a long-term loan or credit
card application, payday loans are convenient because they are quick and easy
to secure.
The following are four great examples of when you know it's the right
time to get a payday loan:
- If the mortgage (or car payment) late fees would be more than the fees for
taking out a payday loan.
- If a late payment is going to hurt your credit. Your credit score is something
you cannot erase, and a bad one will make it harder for you to obtain a loan
for years to come.
- When the long-term consequence of not paying for your immediate needs are
more serious than a $30-50 fee.
- When it'll save you from bouncing checks — the fees for bounced checks can
quickly total much more than the fee for taking out the payday loan.
To keep yourself safe from predatory lenders when you do apply for a payday
loan, there are certain rules you should keep in mind: 1) Find a certified and
trustworthy lender, 2) Make sure there are no hidden costs or upfront fees, 3)
Understand all the terms and conditions of the loan, 4) Thoroughly go over every
cost involved in the deal, and finally 5) Skip loans with high annual percentage
rates.
There are some important recommendations WeGiveCash would like to offer to all
considering a payday loan: 1) Never borrow more money than you know you can pay
back — if you earn $500 a week, then borrow less than that - anymore and you'll
likely default on the loan (from there, the cycle of debt is inevitable). 2)
Payday loans aren't a long term solution for any real problems — if you find
yourself constantly having to get a payday advance, then you might want to consider
budgeting lessons or advice. Payday loans are never an effective way to manage
long-term money problems, but rather a minimal financial assistance for when
emergencies strike. Use them wisely and sparingly.
Below is an outline of articles with further information on the payday loan
industry.
