Best Short Term Loans

Find the easiest payday loans to relieve your stress.

Big image

The Holidays are Over

So there you sit, Monday morning after Christmas and you know the credit card bills are going to be coming soon. What options do you have? Work more overtime? Sure.. Get a raise? Hah. Maybe a Short Term Payday Loan is your best option. But where do you look? Online or a Brick and Mortar Payday Loan store?

How to be careful choosing a payday loan provider

Finding the right lender can be tough.

Many people run to payday loan lenders during financial emergencies. However, since there are so many loan providers of this kind around, it is important that you choose the right one. The following are some of the things that you should look for in a payday loan provider.


Before anything else, you need to ensure that the payday loan company that you are dealing with is legitimate and is licensed to operate in your state. There are states, such as Florida and Massachusetts, where payday loans are illegal. Check the company with the Better Business Bureau or Attorney General’s Office in your state to ensure that you are borrowing from a legitimate company.

Interest Rates

Payday loan lenders make it very easy for anyone to avail of this kind of financing. Many even offer one hour loan processing. However, do not be deceived by how fast you can get cash from such lenders. Always check the interest rates carefully because many lenders charge exorbitant fees. You do not want to end up paying interest rates that are bigger than your loan principal.


Aside from the interest rates, you need to consider the terms and conditions of the payday loan. For instance, payday loans can become due anywhere between 15 and 90 days. Which payment period is advantageous depends on your capacity to pay. It would be best to get quotes from several lenders so you could compare which payday loan company can offer you the best deal.
Big image

Common Pitfalls for Payday Loans

Andrea Felts had money troubles after her divorce. To cover expenses, the high school principal from Albuquerque, N.M., took out a $400 loan from an online lender, which charged her an additional $120 to borrow the money for just 16 days. That's comparable to an annual interest rate of 684 percent.

Felts didn't have the full $520 to repay at the end of the 16 days, so she rolled over the loan for another $120 in fees. Before she was able to get together enough money to pay off the total, she had rolled it over five times and paid $600 in fees on the $400 loan.

Payday lenders hold a borrower's post-dated check or tap directly into his or her bank account to withdraw the money on payday. With most traditional loans, the principal and interest are paid down in regular installments. With a payday loan, the borrower must pay off the whole loan on the next payday. That's often impossible, so those people repeatedly pay hefty fees with nothing going to the principal.

New Mexico allows payday lenders to charge up to 417 percent annual interest. But as Felts' situation shows, rate caps might be ignored by online lenders peddling payday loans. Felts' attorney says she is pursuing a class-action suit in New Mexico.

Consumer protections vary widely by state. Only 15 states have caps below 60 percent. But the payday-loan industry is working to weaken even those laws. During the 2008 election season, the industry spent almost $30 million on Ohio and Arizona ballot initiatives that would have removed caps. But voters in both states roundly defeated the industry's efforts.