The world today is a hard and costly place to live in. Unless you’ve managed to make your way into a Forbes list, chances are that you too rely on your monthly wages just to get by. If you’ve been at your job for at least a few months, you’ve probably worked out how to fit in all that you need to spend for within the parameters of what you earn. What you probably don’t realize you need figuring out are emergency expenses.
There are just some things that you simply can’t account for. What if you or a loved one requires some emergency medical treatment? What if your kid needs something for school that suddenly pops out of nowhere? These and many other emergencies might suddenly put you in a position where you need money fast. One very popular method of getting that extra bit of cash is through online payday loans direct lenders. These promise quick payouts and great convenience.
But are they boons or are they only going to make things harder for you in the long run? There are several pros and cons that you need to look at to help you decide which is which.
Quick lending. The whole point that drives online payday loans direct lenders is that the payout processing isn’t too long. Some out there will release funds within the day of application; others might take just a little over 2 days.
Less stringent. Unlike full-fledged bank loans, payday loans don’t have too strict a set of requirements. Usually, an ID, certificate of employment and your bank account number is enough to get you through.
Very high interest rates. If you put yourself in the shoes of online payday loans direct lenders, the risk is greater on their part. If you upped and ran away, there’s little that they can do-except maybe bug you repeatedly. Naturally, to offset those who default, they raise the interest rates greatly.
Security risks. Unlike banks that are heavily regulated, online payday loans direct lenders have less securities in place to guarantee your safety online. How can you be sure your information isn’t going to be used to spam you or worse leave you vulnerable to cyber attack? You can’t.
For quick cash, these payday loans are truly a gift. They help get you out of your financial jams in a hurry. But if you’re not too careful, you might be setting yourself up for bigger trouble down the road. So, if you truly, really need the cash for something big and are willing to embrace the risks? Go for it! If not, it might be better to weather the storms until you next payday actually comes around.