In the United States, consumer debt hit $3.4 trillion last year. That comes down to about a debt of $10,200 for every person in the country, says Moneyzine. A consequence of the current low-wage economy, high costs of living—continually on the rise—hasn’t helped any. Median household incomes might have grown by at least 26 percent since 2003, but against household expenses that have jumped as much as 51 percent, those incomes hardly make a dent. This is one of the possible reasons, too, why the numbers of payday lenders in the market have since increased.
What are payday loan lenders?
These are lending companies that offer you the cash you need, sans a credit check or a review of your financial history. That can be liberating in a way, especially if you have had a bad credit history, which leads most banks to reject your application. The lenders typically deposit the funds directly into your account and you have until your next payday to pay it off.
When should I use a payday loan?
You need to keep in mind that quick online payday loans only work to your advantage under certain conditions—one of them being on-time payment. You have to have the funds to pay off what you owe in full the minute your paycheck comes in. Pay it back as soon as you can. That way, you won’t have to keep rolling over the loan, which could net you a lot of interest.
How do I find a payday loan lender?
Shop around. That’s always the first step. Never go for the first one you see. Generate a short list of your prospective lenders. Go for licensed companies only. Then compare interest rates and terms. Pick the one that offers you better terms or greater flexibility in repayment methods.
