Category: rates

Easy payday loans – cost comparisons

If you need to use a loan, such as easy payday loans, then it’s important that you are in control rather than anyone else.

Part of ensuring that you stay on top of your financial affairs is to have an understanding of the costs of your borrowing and how one form of cash advance loan compares to another in cost terms.

Loans cost money

Virtually any form of lender must charge you for borrowing money. The interest and other charges they recover typically provides them with the profits they need to be able to finance further loans to you in future.

Even advertisements of zero percentage loans for things such as cars, typically will have the cost of the loan built into the purchase price of the car or other item you’re buying.

However, the cost of the fast loan typically varies considerably depending upon things such as the lender, the amount borrowed, how long it is borrowed for and so on.

https://www.bankrate.com/calculators/managing-debt/annual-percentage-rate-calculator.aspx

The payday loan

Easy payday loans typically operate on the basis that you borrow money to help you through a tricky month. You then pay that back in one go when you next get paid.

What you use the cash advance for is up to you. Examples may include:

a domestic emergency, such as the washing machine breaking down;
an unexpected bill for the vets;
or even something nice like needing to make the final payment for that great holiday, or changing up currency for your holiday spending!
If you need money fast to help you deal with such needs, trying to get a loan through conventional sources such as the banks may often be rather slow. If you then are unfortunate enough to go overdrawn without an agreement in place, the charges may be severe.

Unauthorised borrowing versus payday loans

The actual figures may be subject to change but in some cases a payday loan may be less expensive over a period of a month than a comparable unauthorised overdraft.

Given the very nature of payday loans, they also mean that the borrower is not taking on a long-term debt commitment that may accumulate over time.

Payday loans – suitability

Of course, the payday loan may be very suitable for some purposes but not all.

It is not designed, as a product, to help you if you’re in serious debt.

Easy payday loans may be a very useful way to help with occasional specific needs but they may not be suitable if you are consistently struggling to meet your regular monthly outgoings.