At least once in your life, you’ve probably been blindsided by an unexpected situation that demanded an unexpected infusion of cash. It’s not always about the money you have available to you payday loan…. In a circumstance like this, choices like payday loans and other forms of short-term financing may be helpful.
However, what exactly are payday loans?
Payday loans are a form of unsecured cash advance that typically range from $100 to $500 and do not require any collateral to be provided by the borrower. Payday loan rates, fees, and periods vary not only by lender but also by state. The phrase “short-term” refers to these loans because they are often due within a week or two, or by the time you receive your next salary, whichever comes first.
How do payday loans work?
Payday loans, which frequently come in the form of cash advances, are designed to be short-term solutions that can be utilized in times of financial crisis. A fee is charged for the use of this type of short-term loan, and the borrowed amount, which is typically less than $500, is due at the end of a period that is typically two weeks long.
If you are unable to repay the loan in full when the cycle comes to an end, the lender may charge you an additional fee to prolong the repayment period by an additional two weeks. However, this will come a