A Warning About Pay Day Loans

You have probably seen advertisements where you can get a cash advance until pay day. These are typically called “Pay Day Loans.” You bring in prior paystubs and let them know how much you want to borrow. You get the money right there, and you have to pay it back when you get your paycheck.

Make sure you read the fine print.

The rates on these short-term loans are astronomical. Is it really necessary that you have the money right now? Is it possible to get an interest-free cash advance from your employer? Even if it is difficult to ask your employer, it is worth a shot.

Another thing to be careful of with these loans is getting in a viscious cycle where you are continually using the services because your normal cycle of pay day spending has been altered. Every time you get one of these loans you are paying a lot in interest.

Pay day loans can be great for times where you absolutely need the funds and you cannot get them any other way. Just be careful.