The Pros and Cons of National Payday Loans
You would almost have to live in a cave not to be somewhat familiar with national payday loans. These short-term, convenient loans are being advertised like crazy these days. There are storefronts popping up like mushrooms in cities all across the United States and you cannot turn on the TV without seeing commercials advertising national payday loans.
So what is the deal with these loans? Are they good? Are they bad? Why are they popular? Well to answer those questions honestly, you have to look at both sides of national payday loans. The fact is that national payday loans are very convenient. They are designed to be used in times of emergency and you probably have experienced, at one time or another, having no money when you need it very badly. Maybe your car broke down on the expressway in between paychecks or perhaps your family pet fell ill and you needed a couple hundred dollars to visit the vet on the weekend. Whatever the reason, when emergencies such as these pop up, it is nice to know that you have somewhere to turn to for money.
National payday loans are widely available. You can find a store near you that features these loans or you can apply for one of them right from your home computer. The convenience factor is a big plus with this type of loan. Another positive thing associated with national payday loans is the fact that you receive the money very quickly once approved. This means that you can get your car off the road and fixed the same day it breaks down, or you will be able to pay the veterinarian their fees for looking after your ill pet.
Now for the not so positive side of national payday loans. Perhaps the biggest drawback to this type of loan is the fee charged. On average you can expect to pay $25 for every $100 you borrow. This is a lot of money so you should be very sure that you can pay the full amount back at the end of the loan term. If you take out one of the national payday loans and default on that loan, you will end up paying some pretty stiff penalty fees. And, if you fail to pay off the even larger debt you have accrued, you will most likely end up in a viscous cycle of debt that may be next to impossible to get out of.
Unfortunately many people use national payday loans to blow the money. This is a bad habit to get into because of the high fees associated with these loans. Many people actually get hooked on national payday loans because they are so easy to obtain. This type of loan should only be used as a last resort. They were designed to be used in cases of extreme emergency and because they cost a lot to take out, it is never a bright idea to apply for one payday loan after another.