Financial Accuracy

As it turns out, the name payday loan isn’t the only name for this particular service.  In fact, there are several different names that all mean the same thing.  Here’s a list of names that all mean the same thing:

Payday Loan
Payday Advance
Cash Loan
Cash Advance
Paycheck Advance
Cash Advance
Consumer Loan
Consumer Advance Loan

I’m sure there are many more, but these are just a few of the names given to a payday loan.

So what actually is one of these things?  A payday loan is a short-term loan, to be paid back on the borrower’s next payday from their job.  It usually has a higher APR (Annual Percentage Rate) than other, regular loans, but since the loan is only a couple weeks long, the interest does not get too high.  For example, if a payday loan had an APR of 390% and you borrow $100 for two weeks, the interest would come out to be just $15.  That makes the total repayment $115, which isn’t too much of a difference.

The way you need to look at it is this:  If you have an unexpected bill, you can either pay it off with a payday loan and just pay back the interest, or you can wait on the bill until you get paid to pay it off and tack on the penalty of paying a late bill.  That penalty could be more than just a fee.  It could show up on your credit.  You don’t want to have all those problems, so just find yourself a good payday loan.  But when you do, make sure to use it responsibly.

For more information on payday loans, Click Here.