For those people who find themselves in a sudden bit of financial difficulty and require some funds fast, then there are loans that you can get, which allow you to get the money on the very same day. However, this level of speed does typically come at a cost, with these types of loans being more costly than regular ones. There is also the impact that they have on your finances, long term that you also need to seriously consider before getting one.
Some of the most frequently used types of payday loans are listed below for you to take a look at and decide which one of them, if any, is the right choice for you to go ahead with.
Pawn Shop Loans
If you have anything that is of any sort of value, such as a piece of jewellery, a laptop computer, or a bicycle, then you can take it to a pawn shop and exchange it for a certain amount of cash - depending on the exact value of the item being pawned in. This is typically quite a bit less than what you would get for the item elsewhere, but you are paying a premium for the quick cash.
The good thing about a pawn shop loan is that you do have the option to buy the item back, although this must be done within a certain time frame. However, if you do not meet this deadline, then the pawn shop sells the item in order to recover the costs of buying it from you. These types of loans come with an APR of as much as 240 percent, so they are very expensive.
This is a loan for a certain amount of money, which is then paid back (with interest) when you receive your next pay packet. Due to how they work, it means that you can only lend a limited amount of money - as much as you get paid each month. The good thing about the loan being secured against your pay packet is that there is no need for a credit check, meaning that anyone with a steady source of income can get one, regardless of their credit rating.
However, you should expect to pay a premium for this, with an average APR of around 400 percent. If you do not then pay that back on time, you run the risk of having to take out another payday loan in order to pay for the original one, pushing up the amount that you owe even further. This has the potential to spiral out of control and leave you with a mountain of debt that you will never be able to pay back.
If none of these options sound like they are financial products that you have interest in, then why not take a look at getting a vodafone cash loan instead. With these, you simply make a purchase from your Vodafone wallet, providing you with an unrivaled level of convenience and flexibility.