In the past we have spoken at length about interest rates on loans. We have dove into when or when you should not get a short term loan. The key factor to everything we publish here is that you need to be aware of what you are getting yourself into when looking at a small loan. The biggest problem people have with these types of advances is that they come with higher than average interest rates and you also will end up paying a large sum back to the advance lender if you do not pay the credit back on time.
When applying for an advance you should check out interest rates at the state level. Most of these types of loans and their interest rates come from the state level. State legislators have had their eye on the payday loan industry for quite some time and legislation for the industry is often voted on a few times per year. There are definitely some down sides to these types of advances, but they also help people out of a jam.
Many of these advances have different payment options and the different flexible payment plans have different interest rates. The lowest interest rate comes along with a payment plan where you pay back the advance with your next paycheck in entirety. This is the preferred payment option of the loan lending companies, who want to make sure they get their money back quickly. The next option is a flexible payment plan or a plan to pay back the advance in installments. This type of plan usually comes with a slightly higher interest rate. Lastly, if you are in a jam, you can defer payment and get more money in terms of a loan. This is not recommended as the interest rates are extremely high. You will end up owing way more money than you needed.
As we mentioned above, before getting an advance, make sure you understand the interest rates and payment plans associated with your advance. If you are not careful, you could end up owing a ton of money!