Should You Take Out a Faxless Payday Loan?

By Jackie A De Burca

It depends. For some people, a faxless payday loan is the only way to avoid big trouble. For example, you may suddenly receive a bill that's higher than you expected. Or maybe your car needs some repair before it will pass MOT and you need the car to get to work.

In such cases, a faxless payday loan can be the only option open to you to stave off problems. Where some people go wrong though, is in borrowing money for luxuries or gadgets they don't really need.

Don't forget, every kind of loan will cost you money. A bank charges interest based on its APR (annual percentage rate) which is a lot lower than the fixed rate that comes with a faxless payday loan.

It may seem excessive if you have to pay 20 or even 30 percent interest over your loan, but do bear in mind that you can have the money in your bank account within hours, with no credit check or other hassle.

Furthermore, the purpose of a faxless payday loan is to bridge a financial gap for a period of no more than a month, which means that you'll know exactly how much it will cost you.

Make Sure You Really Need a Faxless Payday Loan

Please, don't make the mistake of borrowing money simply because you covet something. You've been invited to a fancy dinner, but you haven't got the cash at hand? Then you had better make sure that once your paycheck comes in, you'll be able to pay off the loan. If you don't, the lender will charge you the fixed rate again. Do that for three months, and that dinner will have cost you twice the amount that you handed the waiter. '

On the other hand, if you have a dead refrigerator in your kitchen in the middle of summer, it's quite a necessity to get a new one. Let's say you find a great offer in the newspaper for display model refrigerators at 40 percent off, but the offer lasts for just a few more days. Then what?

Let's do some numbers:

Normal price: 450 pounds.

Special offer: 300 pounds.

If you'd take out a faxless payday loan for 300 pounds and the lender charges a 30 percent fixed rate, the new coolness in your kitchen would costs you a total of 390 pounds. That means you can save 60 pounds!

However, this applies only if you repay the loan within a month. If you don't, your lender will charge you the same fixed rate again and you'll end up spending more than if you would have waited.

That is why you should always weigh the benefits of a faxless payday loan with the disadvantages. Do the math, make sure you can pay back the payday loan on time, and you should be fine.

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