By Kari Johnson on June 23, 2011
.jpg.aspx?width=75&height=75) When you think of a payday loan, you probably think of the kind you are required to pay back two weeks after you have received it. While this may be the main one, there is another type of payday loan there is also a 30 day payday loan that you would not have to pay until the end of the month.
It has the same advantages as a two week payday loan. You can usually receive it without a credit check, making it ideal for those who are having credit score problems. Basically, as long as you can prove you have a steady income, including a paycheck coming in at the end of the month, you should be approved. Also, most payday loans can be approved while you wait, making it seem like the ideal way to make some fast cash.
But even though you have twice as long to pay back a 30 day payday loan as opposed to a two week payday loan, it can also have the same disadvantages.
Payday loans are infamous for having interest rates that can even exceed those of credit cards. There can also be other fees charged on the money or when you apply for the loan. If you cannot pay the loan back at the end of the thirty day period, a late fee will probably be added. Between the fees and the interest, the amount you eventually pay back is usually significantly higher than the amount you originally borrowed. If you were not careful, this can make it impossible to pay the loan back when you receive your paycheck.
Most people think a payday loan, whether for fourteen or thirty days, is a bad idea. It is expensive and it can turn into a cycle as you keep borrowing money to repay the loan monthly. It may seem like quick money, but is a temporary fix to a larger problem that will continue growing, at a rate that will be much quicker if you are using these loans. It can also have a detrimental effect on your credit score, depending on how long it takes you to pay it back.
If possible, you should look into other options. Personal loans and even credit cards could be better for you, depending on your situation. Whatever method you decide on, be sure to research it so you know if it is really the best for your situation.
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