Granted. It's kind of a bold title, payday loan is the super expensive .... Or are they? It is actually possible to find quick loans with interest rates down to 5%, which is competitive with most traditional bank loans. Few who know this because over the last few years there has been much focus on the most expensive payday loans. Obviously, there are some very expensive payday loans, you should avoid taking, but there are actually many payday loans are quite reasonable.

Beware of SMS loans

The most dangerous loans are the so-called SMS loans. SMS loans typically have an APR of several hundred percent and you have to pay back the loan after 30 days. It is the very short term loans where you need to be extra obs to get paid his bills. If you forget or are not able to pay back the loan, you will quickly end up in a situation where your loan has been multiplied. It is a very unpleasant situation, and if you end up in such a situation is the easiest solution typically taking a payday loan with a lower interest rate and pay the loan off with, but there is money to be saved by getting a quote from the bank. They can often match the interest rate on payday loans if it is not about one of the really cheap payday loans at 5%.

APR is the most important

When you evaluate which payday loan you want to take, be sure to look at the APR. APR means Annual Percentage Cost of and it is a good indication because it is the interest rate including fees and loan origination fees. When you take a loan is typically a formation fee, which can range from a few hundred bucks to several thousand kroner. In some cases, the borrowing rate seem low, but it is only because there is a tower high incorporation fee. Therefore, you should always compare the APR and not borrowing rate. You can compare and see all payday loans in loan-service here.

Add a Budget

Have you considered making a budget? It's a good idea to do, because it forces you namely to consider your expenses - there are some you can cut from? Often you will be surprised how much unnecessary spending you have. For example there is much money to be saved by shop once a week, as it forces you to plan your purchases - so you avoid buying a lot of things that you just are missing.

Consider a bank loan or SU loans

You can obtain quotes from different loan companies - it is 100% free and without obligation. Then you can compare the interest rates that your bank offers you. It allows you to take an informed decision when you need a loan or payday loan.

Generally, bank loans and SU loans cheaper than payday loans, so it is definitely worth considering these types of loans. However, please be aware that you can not get the money paid as quickly by the bank or SU as you can, if you take a payday loan.