To Pay Or Not To Pay, That Is The Payday Question

Today's times are hard. Jobs are being lost everyday, companies are making more cutbacks in hours, expenses, and other areas, and people are trying to figure out how to cope with it all. When times are tough and people are struggling, it's often a good time to look at back-up lines of credit, or other types of emergency lending that can help people stay of a financial crises. However, there are a lot of options out there and the biggest question that one might ask themselves is whether to pay or not to pay the fees associated with the types of options that they have.

Each loan option has some sort of fee structure involved, otherwise they wouldn't make money and let's be honest, it is a business for them. Credit cards have fees, banks have fees, even store credit has fees associated with them. Often this would be in the form of interest, but there are times when an annual enrollment fee, late fee, or other type of fee also occurs. The question many people wonder is which one is going to be the most cost effective for them and their situation.

One example is a person who only has a limited supply of monthly income to work with. They may want to choose an option that provides for a longer payment schedule, making it easier to manage the budgets daily. Whereas a person that has say a one-time large income check coming in, like an IRS return, and just needs to get by until that income arrives. This person may want to look at an option that provides them the money upfront, but has a shorter term on it, and thus resulting in less ongoing fees and most likely a better experience.

For those that are considering various types of loans to help them get over a financial struggle, one option is to use payday loans. These loans are often a short term, with high interest, but are paid back quickly so the interest doesn't keep occurring monthly, unlike with most credit cards and personal loans. Often a person can pay hundreds of dollars during the course of a long term personal loan or credit card, versus much less interest occurred on a short term cash advance loan. However, payday loans often have penalties for not paying back on time, so only use these options if you feel that the loan will be able to get paid back in the time allotted. Otherwise, the fees and penalties could out-weight any gains made by the short term interests. In the end, it's up the individual to manage their loan and whether they want to pay or not to pay fees, and that is the payday question. Use all loans, including online payday loans, responsibly, and make sure to read everything before signing.