With the continuous increase in gas prices, it is not a wonder that the prices of most everything else also are going sky high. From basic commodities to luxury items to financial products – these are all affected by the price increases. And it does not really matter where you live now. Wherever in the world you may be, the economic strains are being felt.
Due to the difficult economic times that the whole world is experiencing, it is but natural to have to face temporary financial problems every now and then. This is especially true for us who are employees, those who work for someone else. What is your plan of action for such financial shortages? Perhaps you look into loans – a lot of people do.
For many people, the primary consideration when it comes to borrowing money is how affordable the payments are going to be. As much as possible, we want to be able to receive the money and then pay it back without sacrificing most of our coming pay cheques. This is but common sense.
One very viable option for affordable cash to deal with financial problems is a payday loan. It is practically like any other kind of loan since you have to borrow money from a lender and then you have to pay back the money to the same lender. Of course, by its very definition, a loan is not something that normally comes for free. When you take out a loan, you have to add on a certain amount when you pay it back.
The question then is how much will a loan cost you? The answer, of course, depends on the type of loan you are taking out and the lending institution that you are dealing with. With a payday loan, you can determine exactly how much you are going to pay. This is because of the fact that payday loan lenders charge their fees in a unique way.
Instead of charging interest in the way that other conventional lenders do, they merely tack on a fixed sum for every certain amount that is borrowed. The fee really depends on the payday loan lender but it can play around $10 to $30. This fee is usually charged for every $100 borrowed. Let’s take a hypothetical example. If you borrow $500, how much will you be paying for charges? Let us say that the fixed fee is $20. Just multiply this by 5 and you’ll get the total charges. In this case, that would be $100. Your total loan amount that is repayable is then $600.
For some, this may seem to be a little bit higher, especially when it is compared to conventional loans. Then again, think about it. Payday loans are much easier and more convenient on the borrower. When it comes to the most important considerations – time, ease, and convenience – payday loans score all the way up there. If the fees seem a little higher, they are definitely worth the benefits and as such the loan becomes even more affordable in the overall picture!