According to me there are two categories of people in this world. The first category are experts at money management right from the day they start getting pocket money. They know the precise amount to be spent on dates, socializing, movies, a new pair of sneakers, but they also know the right amount that needs to be saved each month. These guys always seem to have some hidden resource of money to tap into and for them money is as abundant as pollution on the planet. Then, there are the second category (I belong to this category) of people. These are the guys who spend money faster than they earn it. Saving money is always a pipe dream. Spending money is based more on instinct and impulse rather than planning. They live from one payday to the next. And on more occasions than not, their bank accounts are as barren as a desert by the 25th day of the month, if not earlier.
Now, if you belong to the second category, then there is no room for an emergency crunch situation in your life. What if you have to rush your loved one to the hospital? Where do you arrange the money from? Let's look are a far milder situation. Let's say you have to pay your credit card bills (You already have bad credit and you cannot afford another delay). Do you go from door to door asking money from friends? That's more embarrassing than being caught with your neighbor's daughter with your pants down. Not everyone has a backup resource to tap into. So, don't feel distraught if your friends are not able to help you.
I thought we were discussing payday loans
Relax partner! We are getting there. The reason I mentioned the two categories of people and the kind of money management problems they might face, is because I myself have been through it. Let's face it. At some point or the other, we all face an emergency shortage of money. Some can afford the luxury of tapping into their bank accounts or using credit cards to withdraw money. Others have to rely on more conventional methods like loans. But when you need money fast, you really do not have time for credit checks, documentation, verifications etc. And that's what loans are all about. Do you think you can walk into a Well's Fargo outlet and walk out with a check in your hand? Nopes. That's where payday loans differ from the rest. They are fast, easy, short term loans that can bail you out of most emergency money shortages within as less as 24 hours. There are no credit checks, no documentation and no unwanted delays. You simply apply online and watch the money being credited into your bank account.
Wait, there has to be a catch
Not really, except for the fact that you have to repay back the loan by your next payday. If you are unable to do it, then the interest rates will mount, late charges might be applicable and the amount might increase faster than the blink of an eye. But isn't that the same with all forms of loans? Besides, payday loans are all about flexibility. They are most useful when you have a short term requirement for a small amount of money. Do not expect to borrow $10000 via a payday loan. The maximum amount that a payday loan lender can lend you is about $1500. Now, the interest rates for a payday loan can be substantially higher than any conventional loan that you know. The charges usually vary from one lender to the other. But they usually range from $12 to $15 on every hundred dollars borrowed. This means that, if you borrow $500, then you have to repay $575 on the next payday.
If you consider this to be atrocious, then maybe you can head back to your friends and start looking for alternative methods of money. Think about it. Where else can you get money as fast and easy as payday loans? And when you weigh it against some of the other possible outcomes of not having the money, it seems fair enough.
So you want to know more about Payday loans? Feel free to browse through the rest of my articles on it.