So this whole ordeal with the bank (see: I Am Not At Home) made me think about personal loans. Because the debit I was left with at the end of my marriage, I am of the general opinion that if I can’t afford something I don’t really need it. Amoeba agrees with me and that is how we live our lives.
A couple of times when I was in college I took out payday loans, but they aren’t something to be taken lightly for frivolous reasons. The interest on a payday loan can be quite steep. Both times I used the service it was for emergency purposes — once when I was stranded far away from home. (If you read the other post you’ll know what triggered this memory.)
Both times I used cash advance services, I was told the interest rate upfront, and the amount was the same whether I paid the loan back in 5 minutes, or on the last second of the agreed upon date. These days I understand there are lenders like MoneyNowUSA who actually provide a database so that when one applies for a payday loan, s/he can get the lowest APR possible. I also understand MoneyNowUSA approves 4 out of every 5 people (over the age of 18, with valid USA checking accounts).
Of course, just because you can get approved doesn’t mean you should take out a payday loan. The loan periods are usually quite short and even with the best APR, the financing is going to be a significant percentage of the total. If you take out a payday because you have persistent cash flow shortages, you are going to just keep ending up further and further behind. Better to examine your expenses and cut a couple of luxuries.