Payday loans are great in a lot of ways, but there are some instances when a non payday loan would serve your needs better. Payday loans are meant to solve your short term financial needs. What this means is that if you take out a payday loan you should be able to pay it all off, plus interest, by your next payday. If you cannot do this, you probably want to consider a non payday loan. Each situation is different, and you need to look at your situation and the numbers of a non payday loan as well as the numbers associated with a payday loan and determine which is more fitting for you.
Non Payday Loan vs. Payday Loan
The first thing you need to consider is the term of the type of loan that you are looking for. A payday loan is usually from seven to 14 days in length, though there are those that are 18 and 30 days long as well. In the world of loans, the payday loan is a very short term loan and this is because it is not meant to help you out long term. Generally speaking, if you need a loan that is more than 14 days in length you should be looking at a non payday loan.
Interest rates should be important to you. When you go with a payday loan you are going to pay a lot of interest. It’s important to consider the fact that sometimes a payday loan is a great option because it is fast and easy and you need the money now. But, if you don’t need the money right now, you may find that a non payday loan is a better option. With a payday loan you are going to pay three to four digit annual percentage rates while when you go with a non payday loan you will only be paying an APR in single to double digits!
A non payday loan is a great option when you need money for longer than a couple weeks. If you only need that money for a couple weeks, than you may not need a non payday loan after all. With a non payday loan you can keep the money and have more time to pay it off. Even though you’ll have the money for a longer period of time you may actually end up paying less than you would with a short term payday loan.
Only you can determine if a non payday loan is right for you. In some instances the payday loan really is a great option, especially if you need a relatively small amount of cash immediately. If you have time to spare and you want to make it affordable, look at the non payday loan options as they generally have more benefits than drawbacks.