Payday Loans – A Double Edged Sword?

Controversial Financial Products.

Every few years a new financial product hits the marketplace and causes a stir between all parties. Credit cards are an accepted addition to modern life now, and it’s not unusual to see a wallet with two or three of them bursting out of the card holder but when they were first introduced and for some time after there was still controversy surrounding its release. The arguments for the use of credit cards were essentially that they allowed people to make purchases and repay the money in the future. The arguments against credit cards were that the interest rates were too high and they would encourage people to get into debt.

The Close Scrutiny Of Credit Cards.

It is not long since payday loans were first introduced and they came under almost identical scrutiny to credit cards. There is no avoiding the fact that the rates are comparatively high, even when compared to those of the credit card, but so do the people who use them as well. Strictly speaking, the charges associated with these two forms of credit are different but fundamentally they can be easily compared to one another.

How Much Does A Payday Loan Cost?

While credit cards attract an annual interest rate of approximately 12%, you are looking at rates a lot higher with payday loans. These rates vary from $10 to $20 for every $100 you borrow usually over a period of two weeks. You are also offered the opportunity to roll the loan over for another period. Of course, you will be charged the same rate as for your initial loan and by rolling a payday loan over too often you will very soon be paying huge rates. Consider that you borrow $1000 and roll the repayment over 5 times. This is not unusual and it means that even at the lowest rate of $10 for every $100 you will have paid a staggering $500 and you will still owe the initial $1000. That’s the equivalent of a 200% APR.

The Questions Raised Over The Legitimacy Of Payday Loans.

Already there is a lot of question over the legitimacy of these loans and regular questions are raised against the ethical question of loan companies offering loans with this kind of charge. Many people who have used them want them stopped because the companies that offer payday loans quite obviously gear their campaign towards the continuing need to roll over the repayment. The companies in question are unlikely to make money from customers who use them legitimately and instead of offering the opportunity to extend the loan as a last resort some companies not only offer the opportunity as a matter of course, but they actually set the extension as default. This means that unless you contact them to inform them you wish to make full payment your loan will extend for another term.

A Solution That Causes More Problems Than It Solves?

Because there are no credit checks required before your are accepted for a loan it is very easy for those who are already in financial difficulty to dig themselves deeper and deeper into a solution that causes more problems than it solves. However, the counter argument is still a fairly strong one. No other financial service is the same as the payday loan, it truly is unique and if you have a short term need for money then the speed and ease in which a payday loan can be arranged is unsurpassed.

The Possible Advantages Of The Payday Loan.

By looking around you are able to borrow as much as $1500 until the date of your next payday and most companies offer the application service entirely online. The application process is one that will take no longer than ten minutes to complete and your application will usually be accepted within an hour. The money itself will be transferred automatically into the bank account you outline in your application and this is the same bank account that your repayment will be taken from on the date of your next payday. If you do have a short term need for financial assistance then the payday loan could be the answer to your problems, but you have been warned; it will cost you a lot of money to keep rolling the loan over.

Christmas Shopping On a Budget

One of the most dreaded events for many people during the holiday season is Christmas shopping. Did you enjoy Christmas as a child, and now hate it as an adult due to what shopping entails around the holidays? Long lines at the check out counter, crowds, high priced items burning a hole in your pocket book is enough to make some people scream until they can’t take it anymore. Well, you can just put your pretty little head to rest, because within this article I have listed various ways to keep within a budget during Christmas shopping this holiday.


First thing is first, what are you going to stuff the stockings hanging over the fireplace with? The best bet on a budget is to buy an assortment of your loved ones’ favorite candy. Along with the candy you can stuff little odds and ends in their stockings this year. Some people tend to make their way to some sort of a dollar market for these particular items. You can find a great selection of items all priced at a dollar. Keep in mind that some dollar markets, pending on which kind, will not sell everything for a dollar or less.


Next we can move on to the bigger gift ideas. Due to our technology these days we may view a movie on a DVD instead of a VHS. DVDs tend to be higher quality. People of all ages will love this sort of gift. Depending on what store you shop in DVDs can be fairly expensive. A good idea is to search around online for websites that sell DVDs at cheap prices. A good online store for DVDs is ‘Deep Discount DVD’. Their DVDs are brand new, plus standard shipping and handling is free. You may also try auction websites. A lot of times people will sell DVDs brand new, factory sealed for a much less price than if you were to purchase it in a store. You can search for almost anything on an auction website. The items being sold on these particular sites will be either used or new. Whether or not a certain item is used or new should be located within the description about the item being sold.


Outlet malls! Yes, you heard me correctly. Outlet malls are another great way to shop. Usually you can come across some of your top name brand stores here, and the prices on items are much less. If the prices aren’t much less then usually the store will hold more sales in it. Think I’m kidding? If you do then stop by an outlet mall before the holiday season is up and see for yourself with your own eyes. Usually around the holiday season is when you can find some great deals at various outlet malls.


What about the shopper who hates malls? That one is almost too easy to answer. As long as you have a computer and internet access then you’re good to go, but if you don’t then you’ll just have to deal with the horrid shopping crowds of the holiday season. Your best bet would be to start searching for whatever items you are looking for on Google, or some other search engine found on the internet. From there you should run across a few nice online stores. A good idea is to place ‘discount’ in with your key words. For example: ‘discount DVD’ or ‘discount action DVD’ or ‘discount charm bracelets’. There are many different ways to word what you are looking for so just use your best judgment.


Those are just a few ways of trying to keep Christmas shopping inexpensive. Keep your eye out while you’re shopping. You never know what clearance racks you may come into contact with that may make great gifts this year!