Finding ourselves in a tough situation surely triples the pressure and intensity we are already in. And with that much amount of stress pressed upon us, we tend to become confused. Furthermore, sometimes, going to your relatives, family or friends can be too embarrassing and awkward so you’re left with your last resort — to got to your lender.
There are different types of loans you can choose from. However, one of each has its own purpose and uses so be sure to know which one you need to get to avoid further complications and misconceptions. Surely you shouldn’t take an emergency loan for your living room renovation or to purchase an engagement ring in the nick of time, right?
Both your preferred bank, lender, and other online lender services provide a wide variety of flexible loans you can choose from. Read further for a quick and brief overview and figure out which loan best suits to assist you in your current money situation:
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Payday Loans: But first, why is it called a payday loan? Essentially, it is a small loan with repayments that are aligned with the borrower’s pay day. It has been widely known in Australia for its convenience and fast process that is online which makes borrowing credit sweat and nerve-free. Payday loans can range up to $1600 over 42 days.
The fees and interest for this loan can be very little, of course, still depending on your lender and both of your agreement. However, if you fail to repay and dishonor a direct debit payment, you will be charged with a significant amount. If it is paid within 48 hours, the fee will be waived. There are lots of payday loans providers out there which aims repayments are aimed to be kept affordable and manageable.
Cash Advance Loans: Traditionally, cash advances are processed by asking your employer for an advance on your salary to fulfill your sudden shortcomings. The amount that you advanced will be deducted in your next salary.
With today’s online lender services, this loan is made easier and more accessible for more people in dire need. This option option lets you borrow a significant amount and is directly transferred into your account. Paybacks will be debited from your account following your repayment schedule. Cash advances are provided in smaller amounts, in average, around a$250 or $300 for 3-4 weeks and paid off in weekly installments.
Emergency Loan: Sooner or later, you will be trapped in an unforeseen situation — an unexpected death, accident, vet bill, car repair bill and alike. We all know borrowing money under this circumstance can be really difficult, that’s where emergency loans come to the rescue.
At most, an emergency loan will cost you part 4% per month along with an establishment fee of 20% of the amount borrowed. If you wish to stretch the loan in a month, another 4% interest will be charged. Pay back on time and regularly so no additional charges will be credited to you.
Unsecured Personal Loans: Having your assets on the line can be really tough and is bothersome especially if you’re unsure if you can repay a loan on time.
Some online loan providers’ unsecured loan implies not requiring a fee with regards to your assets when applying for a loan. Similarly with other loans, these lenders evaluates you basing on your capability to repay as well as your financial situation. This type of loan is great for home renovations and travel leisure. Just ensure that you can repay the loan so you don’t check yourself in a more complicated position.
Each loan contracts has its own terms and conditions so it’s only necessary that you know which options to cancel out and which one to pursue. It’s absolutely important that you know the differences between the loans so you know the right one you should get.
About the Author:
Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free loans services.