You’ve no doubt heard about the pitfalls of “ no fax payday loans ” or paycheque cash advances. The interest rate, when compounded over a full year, stretches into three and four figures.
That would not make sense because it would mean the payback would be bigger than the loan itself. Fortunately, not many people take out a cash advance payday loan for a full year. In fact, most people know the nature of the loan defies that. It’s a short-term, low dollar amount loan that you should pay back in one or two paycheques.
No one uses payday cash advances loans for long-term purchases. It might be good for a used car down payment, but it’s not the kind of money you use to buy a house. You can use a payday cash advance to pay an emergency bill, but it doesn’t make sense to use the moolah for unnecessary purchases. Your no fax payday loans can help you pay bills – which is what millions of Ozzies use them for. But these “bad credit loans” are not something you would use for superficial items.
In fact, there are several ways in which payday loans might actually help you save money. Here are a few:
Avoid a loan shark – Unregulated and illegal, a loan shark might easily charge 50-100% interest on a loan.
Pay bills on time – You know that penalties and higher interest charges can add up. Then there is the damage you do to your credit score if you pay bills late.
Make a timely purchase – We don’t recommend buying anything just because it’s on sale. But if you know you will need to buy something soon, and you see it advertised at a discount, say 30% or 40% off the retail price, a cash advance can enable you to buy it when it’s on sale.
If you don’t trust your instincts for finding the cash advance loan yourself, you could try an aggregator to search for you. AnydayPayday (http://www.anydaypayday.com.au) will take your information and match you up with a lender that best fits your needs.