payday loans pros cons

Pros and Cons of Same Day Payday Loans

With the economy in the state it’s in, it is hardly a surprise that more and more people today have to live their lives paycheck to paycheck.

If you find yourself unable to save anything and if you are struggling with the inevitable emergencies that seem to pop up just when you are strapped for cash, then same day payday loans from websites like Elc Loans could be lifesavers.

You can take comfort in the fact that you are not alone in this predicament. Payday loans are gaining popularity by the minute. It is easier to get a payday loan today than it has ever been. There is also a lot of information and literature available on the subject so that you can know exactly what you are getting yourself into.

Before taking a payday loan, it is best to know everything you can about them. As with anything else, there are pros and cons of payday loans that you should be well aware of before taking any decision.

Pros

The biggest advantage of the same day payday loan is that it is very easy to get online.

The only requirements are that you have a steady job and a checking account.

There are usually no credit checks involved, so you can get the loan even if you have bad credit.

The application process for getting a payday loan is very easy and the loans are approved online in a very timely manner.

After all, payday loans are specifically designed for emergencies.

A post-dated check from your checking account will secure the loan and the repayment plan for the loan is usually very easy and simple.

Cons

The fees or charge levied by the lender can be quite steep.

It is not unusual for payday lenders to charge as much as 10-30% of the loan amount as fees. Obviously, payday loans should be a last resort reserved for the direst emergencies.

Payday loans are very short-term loans, usually for a period of 2 weeks to a month. If you don’t receive your paycheck in time, extending your payday loan can be extremely expensive.

Moreover, overdue loans are dealt with severely.

Conclusion

The reason behind the high fees and the expensive extensions is the fact that the online same day payday loans are not designed to be long-term loans, they are meant to be a way to get your hands on some much-needed cash in an hour of crisis.

When you find yourself faced with an emergency where you need cash instantly and not in a few days or a few weeks time, a quick and hassle-free payday loan sounds attractive.

But clearly, payday loans are only for mature, responsible and well-informed individuals who fully understand the conditions of the loan and the consequences of being unable to repay the loan on time.

With a better understanding of payday loans and their pros and cons, you are now in a position to make an informed decision.

The bottom line is that you will be alright as long as you can pay back the advance within the stipulated time. In that case, you need not to worry about the extra charges and fees associated with extending the loan.

Nor will you have to deal with less than polite collection agents.

With competition increasing among legal online payday lenders, as an informed borrower, you could even compare different lenders to get the best rates and to find a lender who best suits your needs.