When Should a Payday Loan be Used?
by Arthur Jones
Anyone who has ever gotten a payday loan has also incurred some type of an overdraft fee on their bank account. This is because overdrafts fees and cash advances are Overdraft fees that are assessed when you write a check or make a payment for something that costs more than the funds currently available in your bank account. It does not matter how much the amount is for, you can go five cents over your available balance or five hundred dollars over your account balance. You will incur a fee from your bank for the overdraft and a late fee from the payee. So for a five-cent error you will pay up to seventy dollars in fees. If you fail to bring your account to a positive balance then you will incur another fee of thirty-five dollars from your bank and possibly more fees from the payee for not making your payment on time. Now lets take a look at payday loans and their fees. For a payday loan you get the funds deposited into your account and you are expected to pay back that money plus a fee of typically twenty dollars for every one hundred you borrow. During the time your money is owed, you can pay back the money early, but are not expected. On your next payday when the loan is due to be paid back, you must pay back the initial fees and any amount you can afford to after that. If you pay the entire amount then your loan is completed, but if you require an extension you will incur more fees equal to the ones you just incurred. So in comparison, payday loan fees are equal to those being charged by banks for overdrafts. The difference between bank fees and payday fees are that payday loans are something that you obtain on your own, while bank fees are something that is unexpected. Also payday loans do not affect your credit score while an overdraft will negatively affect your credit. Another difference is that when you overdraft your account the bank usually gives you two or three days to get your account in good standing, while when you borrow a payday loan you have two weeks to pay it back and if you cannot in time you get an extension for an equal charge to pay it back.In conclusion when deciding you would prefer to incur payday loan fees or bank overdraft fees, you should look into which one will effect your more negatively. Choosing the right one will help to save your credit or your wallet, at the point in time its your choice to decide which is more important.
About the Author
Arthur Jones is in charge of content distribution at Fast Faxless Payday loans. You can view his company website at http://www.fastfaxlesspaydayloans.com.View their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.comView their website at: http://www.fastfaxlesspaydayloans.com
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