Private payday loan lenders can give you a lifeline when you are drowning with an emergency situation that needs a small infusion of cash. They should only be used when you do not have access to other forms of credit. Keep in mind that you will be paying a high rate of interest when you use private payday loan lenders.
Let's say that your radiator on your car blows out and you have no money to pay to get it fixed. If you don't repair the car, you can't get to work and will end up losing your job. You're already maxed out on your credit cards. You ask your friends and family for money, but no one can spare the $400 it's going to take to get the car fixed.
In this situation, you might turn to one of the many private payday loan lenders who can give you some assistance in this situation. You can apply online and have your application approved in just a few minutes. The money appears in your account within 24 hours.
But, don't think this is all magic. Private payday loan lenders require that you write a post-dated check to secure the loan. When your payday rolls around, you will be expected to pay off the loan. And, instead of $400, you will be paying $440 to cover the interest.
Is it worth it? Well, if getting the car fixed was the only way you could keep your job, the lifeline payday loans offer can really help to bail you out.
But, if you are looking for some money to go to Vegas for the weekend with your friends, a payday loan is probably not for you. That's because the high interest rates make it difficult to pay back if it is not for a necessary expense.
And, if you don't pay the loan back, you can get in trouble very quickly. The interest continues to build. If you're not making any progress on getting the loan paid off, the lender will go to court to get a Judgment against you. Once they have won their law suit, they can attach bank accounts, real estate, and personal property. That means that you could lose your car or your savings account if you fail to pay back the loan.
If you do need to approach private payday loan lenders, make sure you have a plan to pay the money back. If you can spare the money from your next few paychecks, these loans can save you when you are in a tight spot. But, if there's no real possibility that you can pay them back, don't risk it.
Payday loans can be obtained in person at a cash advance store or can be applied for online. The online option will get cash transferred into your bank account within 24 hours.
When you take out an emergency loan, you will write a post dated check or checks for the amount plus interest. As soon as those checks come due, you can expect the lender to cash them. This will leave you with less money than normal for your daily needs. Consider the impact on your budget if you take out a payday loan.
Still, when you have considered all of your options, if you are in a jam, it can make a lot of sense to approach private payday loan lenders.