What can I purchase with a Payday Loan? |
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Answer:
A payday loan is as good as cash. The A payday loan or a cash advance is a personal loan that lenders issue for you to make purchases or pay debts that otherwise couldn't wait until your payday or until you had the money to pay for them. The lender doesn't care when or how much your pay check is, all they care about is that you repay your loan according to your agreement. Payday loans are small amounts ($100-$1000), short terms (usually 15-30 days) and extremely high interest rates (300-850% interest). So you go to the payday loan or cash advance store, they agree to pay you $XXX without a credit check and you agree to pay it back plus the interest they charge. Because the interest is so high, it wouldn't make much sense to make purchases that are not time sensitive. If there is a new pair of sneakers coming out then it may be a good idea to wait until you have the cash flow to cover the expense. If you need to eat and don't have money for food then consider a payday loan. Below are some other good uses for payday loan cash. Good Usage Pay for rent Pay for electricity Pay for transportation Pay for food and water Pay for baby goods Poor Usage Pay for clothes Pay for alcohol Pay for concert tickets Pay for credit card Pay for a car Yes, it is likely the payday loan has higher interest rates then your credit card. Be sure to check but if you're considering taking out a personal loan to pay off your credit card be sure the interest rates of the personal loan are lower than your credit card interest rates. Ultimately be smart, consult with a debt counselor and ask friends and family what their experiences are with payday loans or any personal loans for that. Trackback(0)
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