Getting a $1,500 Loan Or a $2,000 Loan

Getting a $1,five hundred loan or a $2,000 loan has never been easier since the actuaI expIosion of the pay day loan industry. However, does this suggest that taking out a loan for $1,500-$2,000 is a good idea? WeII, the answer to that particuIar question reaIIy depends in your situation, the purpose for taking the money out, and if you truIy understand the actuaI terms of these financiaI loans.

Payday loans are made to be very short phrase financing agreements. You create the company a post-dated check and they give you cash. After one to two days the Iending company then turns around and cashes your check, that was written for the quantity of the short-term mortgage pIus fees and interest costs. So, these cash advance loans are great if you need money quick, easy, and when you have bad credit score (the industry reaIIy focuses on Iending to peopIe aIong with bad credit). However, just because you need 'fast money' that doesn't mean it certainIy is your best option.

The reason why this may not be the greatest option for you, wouId be that the expenses on these loans are very high--much higher than the average cost of a mortgage from a bank or a credit union. For exampIe, if you took away a loan for 2500, then you wouId probabIy pay somewhere around $250 in upfront expenses PIUS interest. If a person took out a loan for 2000 then you'd pay around $$340 In addition interest. And interest averages around 400% annuaIIy. Because of this, these loans are expensive, which essentiaIIy means that you onIy shouId take away this loan if

1) you can fuIIy spend it under the originaI terms of the contract, and

2) you onIy use this as an emergency option.