Fast Payday Loan - Advantages and Disadvantages

A fast payday loan is one of the most effective ways of making vital payments in between paychecks.

The fast payday loan is your only option if:

- There is a sudden emergency that cannot wait (like a medical emergency)
- The due date of a loan installment falls at a time when you are short of cash
- You require a limited amount of money for a specific purpose

When situations like the above arise, a fast payday loan is an absolute necessity, particularly given the fact that times are hard and almost everyone you know is feeling the pinch of the current financial crisis. You cannot therefore turn to others for money, not in this economy.

The fast payday loan has been a lifesaver in millions of cases. What makes the loan attractive is the paperless process involved in availing of the loan. There are no terms for availing of the loan and no documents need to be submitted. If you are a legitimate citizen of the place, are over the age of 18 and have a regular income, then, you are eligible for the loan. That means, just about anyone with a job can apply and qualify for the loan.

The process of applying for the loan is easy. You simply need to fill in an online loan application form along with the required details and the amount is automatically credited to your savings account. The entire process, from applying for the loan to procuring the amount, does not take more than an hour?s time. Therefore, fast payday loans really live up to their name.

However, some people turn to these quick and easy loans whether the situation warrants it or not. Since these loans are easily availed and may be available even by people who have bad credit, it is easy to become addicted to them. That defeats the purpose of these loans.

One of the important things to remember is that at a time when irresponsible lending has landed the country in a financial crisis, relying too heavily on borrowed money to make ends meet does not make good sense. Even the government expresses concern at people availing of these short term loans irresponsibly. Low income people who are in financial trouble must think through all their options before they avail of the loan. The reason for worry is obvious.

For example, suppose you availed of the fast payday loan to tide over a crisis before your next paycheck arrived. You intend to pay the loan back when your salary arrives. But, what if things go haywire and you cannot pay the amount back? Of course, the lending agency allows you to extend the loan after adding their charges to the loan amount. But, if you avail of the extension, your financial burden increases a little. If you 'rollover' your loan too many times, you end up adding too much financial burden on yourself. Chances are your finances will soon go out of control and you could find yourself in a debt trap. You need to be particularly careful with high interest loans like fast payday loans because the amount can pile up if you do not pay off the debt quickly.