Do you often hear and read about pay day loans? Are you curious what that is but don't really know who to ask? Then here's a simple explanation so that you can understand what a pay day loan is.
A lot of people use pay day loans on a weekly basis. Unfortunately, maybe like you, they don't fully understand how a pay day loan really works. In a nutshell, a pay day loan helps in fulfilling our immediate expenses. Life is unpredictable and we do sometimes have financial emergencies. There are things that simply can't wait for the next paycheck.
These loans are usually around $500 to $1500 which if approved, will be forwarded to your specified bank through direct deposit. After which, you and the lender will then discuss your payment plan options that is specially catered to your financial capabilities.
Here are more facts about pay day loans that I learned from payeveryone.net:
- a pay day loans can also be called a cash advance or deferred deposit loans
- it is meant for short term use only and are not intended for long drawn out payments
- it is a great way to save your financial status when you need fast cash
There are many arguments against pay day loans. Personally, I think it's a good thing. specially if used for important necessities and not for personal luxuries. Times are hard and we should learn how to be smart about money.