For many across the country a decision has to be made between getting a payday loan and overdrawing their account. For many they already have their mind made up of what they would do. There are others however, who do not know which is better and why. Here are some reasons why getting a payday loan really is better than dealing with an overdraft fee.
If you want to avoid overdraft fees at your bank you can opt to pay for overdraft protection. If you chose this however, you will have to pay for it. This leaves you asking is paying for this service worth it? Are you are a big enough risk of overdrawing your account that you need to pay for this service? For some people it makes sense to pay for it, but for others it does not.
If you do not have overdraft protection and you overdraw your account you have to pay a fee for every time you overdraw your account. If you do it more than one time it will add up quickly. Your bank will charge you the same fee regardless of whether you overdraw your account by $50 or by $0.50. You could wind up paying close to $30 for going over your balance by even $0.25. This is very expensive.
Overdrawing your account can actually hurt your credit. The more you overdraw your account the more that it will hurt your credit. It is not that you mean to overdraw your account, but it will still count against you. If you want to get a loan for anything this could really hurt your chances or cause the interest rate that you get to be higher.
When you decide to get a payday loan instead of having to deal with all of that you know what you are dealing with and what you are paying right up front. You will be charged one straight forward fee for the amount that you need to borrow. Payday lenders do not hide fees in fine print and they do not charge surprise fees for anything either.
People who chose payday loans over dealing with overdraft fees continue to choose payday loans over overdraft fees. Is this because they know something that others do not? Perhaps they do.
Payday loans have been helping people for a long time now and it does not appear that the demand is going to go anywhere anytime soon. People have learned the benefits of choosing a payday loan over dealing with overdraft fees from a bank. Payday lenders are straight forward with their customers and do not trick them with hidden fees making them trustworthy in the eyes of the consumers who seek their help.
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