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Payday loans sometimes seem like the greatest blessing, especially when there is just no other way of getting the money you need.
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Payday Loans or Advance Financial Flex Loans: The Choice is Yours.
Payday loans sometimes seem like the greatest blessing, especially when there is just no other way of getting the money you need. The ever-growing number of people who take out these loans may make it look as if payday loansare a safe option. After all, so many people can’t be making an unwise decision, that too almost on a regular basis. But one needs to stop and consider that why mostly the same people are taking out such loans repeatedly. If you know anyone personally who has taken a payday loan more than just once, ask them and you will know the reality. They are not taking these loans repeatedly because it is convenient, but because the added loan cost to the principal amount makes it difficult to get out of the debt at once.
A payday loan is a short-term and instant loan, often taken out as tiny amounts like $500 or less. Such loans are generally due on one’s next payday. The cost of the loan may range from $10 to $30 for every $100 borrowed. The rates of interest are invariably high for all payday loans. For instance, a two-week payday loan with a $15 fee per $100 borrowed equates to an annual percentage rate (APR) of almost 400 percent. The total principal and the loan fee is required to be paid back at the end of the loan term. Most borrowers are unable to do so and that causes the loan to roll over into a new loan with a new loan fee.
Now the question arises, what would low-income Americans do if not go for payday loans? There are other types of instant loans as well, such as, title loans or installment loans. However, all of them come with some or the other hidden terms that render those loans highly expensive. Whereas, Advance Financial Flex Loans are different than the rest. The first difference lies in the fact that Advance Financial Flex Loan is provided in the form of an open line of credit. As any unsecured, instant loan, the interest rates are higher than traditional loans for Flex Loans, but it is still less expensive than payday loans. The interest levied on Advance Financial Flex Loans works operates differently. A borrower is required to pay the interest only on the amount withdrawn from their maximum limit, for the time it is withdrawn. The remaining amount does not incur any interest, while being available to be used at any time one needs. There is no possibility of loan rolling over cost here because your one Flex Loan in the form of open line of credit usually extends till you can repay the entirety of it.
