Overnight payday loans have become quite popular recently and online suppliers of such services are certainly in abundance ready to loan you fast cash that you need right now. Perhaps something hit your bank account that was unexpected and now you’re having to scramble to get money in your account before that check that you wrote hits the bank and you get stuck with one of those nasty NSF (non-sufficient funds) fees.
These things have gotten ridiculous with prices going up to as much as $42 each. Bank of America themselves, the biggest bank in the US, charges you a fee of $35 for every instance. What’s particularly nasty about them is that if you’re balancing your budget on a tightrope and many people are now days, getting hit for $35 in your account can cause other things to bounce as well and soon you’ve got $100 of these fees added to your negative balance putting you in a hole that you might feel like you’ll never get out of.
While overnight payday loans are a viable solution if you’re in that situation where you really have no other choice but to get emergency funds, however you must take great care in acquiring such a high risk and high interest loan. A lot of good people who got themselves in a jam will find themselves on a never-ending “treadmill” with these places which means that once they get in and going with them, they find themselves never able to get out from under them, no matter how hard they try.
Overnight payday loans organizations loan you money with no other criteria other than that you have a job and a checking account. This means that they’re going to hit you with interest just as hard as they can. Typically these places will charge you 15% of whatever you borrow for a period of two weeks. This is pretty standard since they understand that most people get paid every other week as opposed to every week.
So you figure 15% on a loan of $300 is going to come to you having to pay the initial $300 plus $45 in interest over a two week period. Likewise, should you borrow $600, then when you come due in two weeks you’ll have to pay back an amount of $690. You can easily see how this will turn into a huge expense if it’s not managed properly and paid off as quickly as possible. You’re talking about easily adding $90 per month to your household bills, or even worse with $600, adding $180 monthly to what you owe, while you still have to at some point pay off the original amount.
So use them if you must, but keep in mind the warnings put forth here. They can be great if you’re in an absolute bind, however make sure to make the sacrifices needed to assure that you can pay them off as quickly as possible lest you find yourself in even worse shape.