Payday Loan Companies

Written by Patricia Tunstall
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Payday loan companies are not all the same, as you will discover when you compare terms, interest rates, and fees. With such variations, you will save money by seeking out the lowest finance charges. You may also discover that you are not getting ahead--and may be going backward--because you notice you are increasingly using payday loan services.

If this is the case, and you are a typical American, your credit card debt is rising. This should be cause for alarm, yet Americans continue to contribute to a total credit card debt of approximately $400 billion. If users read the fine print and pay attention to the terms of their cards, they might better hold the line on their spending.

Using Payday Loan Companies and Credit Cards

Direct payday loans and credit cards have much in common, beginning with the fact that both are loans. Repayment is expected and legally required. Payday loan companies make this clear, and everyone understands that "loan" means the money must be paid back, plus interest and fees.

For some reason, many people do not compute that this also applies to credit card use, perhaps because the minimum payment option is so alluring. Late payments on both are serious, as these may be transmitted to the credit reporting companies which will enter them on your credit reports. Above all, if you see you are going to get behind, call your payday loan companies and credit card companies and explain your circumstances. The worst thing you can do is nothing, because then there really is no chance at a resolution.


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