1159574_high_hopesPayday loans are seen as a saving grace for those months where our income can’t quite stretch to pay our bills.  With the no hassle loans, you could get a little extra cash between paychecks to make those bill payments.  But, is it really the best thing for you to do?  Are there no better options than these no hassle loans?  Before you take out a payday loan you might want to understand how they work, including the pros and cons.

Payday loans are meant to be small.  Most companies will not offer more than $1000 in one loan.  This is because the loan is based on the amount of income you generate in a month.  Some companies are willing to lend you 50 percent of what you make in a month, but the majority of the companies will not do this.  They know it would be difficult for you to pay back 50 percent of what you make in a month.  It would take one entire paycheck plus most of the other paycheck based on the interest.  These loans have anywhere from 20 to over 1400 percent interest.  The average interest rate is usually 500 percent.

From these numbers you can see the payday loan is very costly.  You also have a short period in which to pay it back.  You are supposed to pay the loan within 7, 14, or 16 days depending on your pay cycle.  It would be very easy for you to make the payment in full, unless you need the new paycheck for other bills.  Some payday companies will allow for a payment plan of up to a year, but the stiff fees make this undesirable.

Most of what is used to describe the payday loan immediately appears as a con against the no hassle loans.  They are short term, high interest, and small loans.  They are also unsecured loans, which means you have no collateral to keep the interest rate down.

So, why then would someone be interested in this type of no hassle loan?  The answer is almost always quick cash.  A regular bank loan will take up to 30 days to complete.  Sometimes it will take longer.  You may not even be approved for a bank loan if you have bad credit.  Here is where a few more of the pros come in for the no hassle loans.

The bank loan can take a long time to get.  If you need cash now to pay off some bills or take care of an emergency situation you do not have time to get a bank loan.  Secondly, when your credit is poor a bank may refuse your loan.  If they do not refuse the loan the bank might offer a very stiff interest rate, though it will not be as high as a payday loan.  In this instance you are hoping the bank comes up with the loan for the small amount that you need in time to pay the bill or for the emergency you have.  Bank loans also come with hassles.  You have an application, the application has to be approved, and then you have to sign for the loan.  If you are a high risk you need to have collateral.  If you have nothing to offer the loan could have almost as high of an interest as the cheapest payday loan.

Now that you understand some of the pros and cons of getting the payday loan you will need to look at how you can qualify for the loan.  While it offers little hassle you still have to have a fixed monthly income and have been employed for six months or more.  You also have to have an active bank account for at least three months.  Lastly, your age must be 18 years or older.
Once you qualify you need to figure out if you can reasonably afford the loan.  Can you pay the no hassle loans by the appropriate date?  If not, what type of payment plan is being offered, and just how much will it cost you?  Some companies offer a special offer with your first no hassle loan.  You may find if you pay in full the interest amount is waived, making the loan affordable.  However, this is offered only once.  Also consider the cash crisis you are in.  Medical offices will provide payment plans if you have insurance.  Other companies have credit cards they will offer to help you pay the balance off in a longer term situation.  There are options out there besides these no hassle loans.

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