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Are Payday Loans Suitable for the Holidays? - Unsecured Loans Now Articles Unsecured Loans Now Articles

Are Payday Loans Suitable for the Holidays?

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Posted on 26th December 2011 by Sandra Thompson in unsecured loan |unsecured loans

Payday loans are quite popular in the market because they are quick and easy to acquire.  When there is an immediate need for cash, a person may acquire a payday loan to make ends meet. These special loans offer short-term financing and are payable by the next pay check, hence the name – payday loan.

Come holiday season, consumers will surely be confronted with a lot more expenses.  Thanksgiving Feast, Christmas gifts, Christmas and New Year’s Eve parties, the Hanukkah – all these celebrations and merriment can also pose a challenge when it comes to budget.  If you do not have enough savings especially set-aside for holiday expenses, you might find yourself short of cash and in need of extra hand.

Should you take out a pay day loan right away?  True, anyone can quickly get a payday loan without difficulty.  Most payday loan lenders only require the borrower to be of legal age, a US resident, and to have an active savings account or proof of income.  Good credit history or a high credit score is not necessary at all and you don’t need to provide any form of collateral to guarantee repayment.

If you want to apply, you can simply check the internet to find a reputable payday loan lender, fill-out an online form, and click the submit button.  Upon submitting your online payday loan application, approval can be expected in just a few minutes.  Once approved, the fund will be electronically transferred to your account or you may choose to pick it up from the lender’s location on the same day.

Is there a catch?  Despite the conveniences, there are also some drawbacks worth considering.  For example, the interest rates are known to be steep ranging from 100% to 300%.  Some payday loan lenders allow rollovers which mean you can make partial payment but this would mean incurring the hefty interest rate charges.  If a borrower is not careful, failing to pay back your payday loan on the due date can lead to serious debt trouble.  It can be very difficult to catch up with repayment once you start incurring charges.

Weigh the advantages and the disadvantages before making a decision.  Is it really necessary for you to borrow extra cash to celebrate this year’s holidays?  Can you postpone the holiday trip for next year so you can have more time to save up enough money?  Do you really need to host a big party or can you keep the number of guests to a small number?  Is it really necessary for you to buy that expensive gadget this year or can you wait until your finances are more stable?  Can you find ways to cut back the expenses so there will be no need for you to take out a loan at all?

If you have decided to get a payday loan, the most important thing is for you to pay down the complete loan on or before the due date. You might need to recreate your budget plan for the next month so you can allocate your pay check efficiently and make your payday loan payment.

About the Author

Sandra Thompson is a loan consultant with http://www.unsecuredloansnow.com and has been providing consumers and business owners with Unsecured Loan since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Student Credit Cards and Unsecured Credit Cards. Copyright 2011.

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