By Kari Johnson on May 6, 2011
.jpg.aspx?width=75&height=75) If you are strapped for cash, someone may have suggested that you take out a payday loan to support you until your next paycheck arrives. These can be taken out for a fourteen-day period, but there is also a 30 day payday loan you can look into, but it may not actually benefit you.
A 30 day payday loan can seem like it is just quick money. After all, there is a short application process you can usually fill out online. On the internet, there can be a twenty-four hour turn around period for these loans. However, if you apply in person, you can usually be approved within minutes and leave the business with the amount you requested in cash.
This amount will be based on how much you receive and usually does not exceed $1000. Since it is for a thirty day period, it is generally given to people who have paychecks coming in only once a month.
If you are constantly in a financial bind, this is definitely not the choice for you. The loan must be paid back within the thirty day period and will, of course considering interest, be more than you initially received. If you use the terms to get the full value of your paycheck, it will cost more than your paycheck to pay back.
On the other hand, if the problem you need the money for can be taken care of relatively quickly, this may be an option. It can still cause problems, though. There have been many cases where the borrower has owed such a high percentage of, or even more than, their paycheck that they cannot afford to pay it and still pay bills when the thirty days are up. In these instances, the loans become cyclical and the borrowers become trapped in a constant circle of loans, interest, and debt.
As always when deciding to borrow money, one should consider every possible option before settling on the 30 day payday loan, as it will cost you more money in the long-run and could affect your credit score and financial security later. The only time this would really be helpful is if you would be able to afford it comfortably in your next paycheck, and it is only a one-time expense. Furthermore, you should be sure it is necessary before going into debt to pay for it.
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