There are times when we find ourselves in place where the bills that need to be paid seems to be more than the amount of money that is coming in. Everyone gets to experience this. When we do, we try to be as creative as we can on how to earn that extra cash just to make sure all the bills that are due will be paid. The last option we have on our plate is to get a payday loan just to make sure that all the bills are covered.
Payday loans (often called salary loan in the Philippines) are money being borrowed from licensed money lenders and are paid with an interest amount due. This interest amount due is the payment that a borrower needs to pay the lender for using the money. Payment is often due within the next 20 days or next payday whichever comes first. It is one of the easiest loan that can availed of by a borrower as it does not require the lender to check the borrower’s credit score.
Be aware though that these types of loan have one of the highest interest rates that go with it. Getting a payday loan would mean paying up to 400% annual percentage rate (APR) of interest. So be careful when getting a payday loan. You have to make sure that you are aware of the amount you need to pay when the loan falls due.
Payday loans are usually granted in small amounts. But being short on your source of funds, this will be an additional obligation you will have to pay for next month and will become something to factor regarding your expenses. When you are considering a payday loan, you need to make sure that you minimize the expense you are adding to your next month’s financial obligations. Only take a loan for the amount that you need and nothing more. Some people often make the mistake of taking on an extra loan to have extra cash. The problem will be felt once the loan comes due next month and the interest fees are applied.
To ensure that your obligations remain at a minimum, always keep in mind that the loan should only be for the shortage you have to pay your monthly bills.