What you should know about payday loans ~ Pinoy Reviews

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Wednesday, January 30, 2008

What you should know about payday loans

With the ongoing economic crisis in the US and the lower dollar-peso exchange rate, maybe some of your relatives are resorting or thinking of resorting to payday loans in order to meet some of your needs. While there are a number of advantages of payday loans like it's a quick way to get emergency cash, there's also no security needed, your information is kept secured, and you can apply for it online without any paperwork or upfront costs, there is one big disadvantage that might bite you back in the long run--interests.

During the recent sub-prime mortgage crisis in the US, one of the biggest factors is that mortgagors were not able to meet their mortgage payments because of high interest rates. Payday loans also have a high interest rate, if you're able to pay it on time, there's no problem however, once you rollover or extend your credit, you'll pay higher and higher interest rates until you or your loved ones find yourself in debt.

There's no doubt about it, payday loans is a double-edged sword but if handled right you can use this "sword" to your advantage. My tip, always do a research of your payday lenders and compare interest rates and the terms if ever you decide to extend your payment date. Use cash advance comparison sites like the one linked above or any other credit resource.