Payday Short Term Loans - How 'Short' is Short?

 Payday Short Term Loans

Payday short term loans, what do they mean? Well, payday loans have always been considered small-dollar, short-term loans.

Think about it, the name of the loan itself indicates that it is directly associated with your pay day. As such, the 'lifecycle' of these easy payday loans is dependent on your payday cycle - do you receive your pay day twice a month or monthly? Payday Short Term Loans - Ensure the Payday Loan's Due Date

Not all of us receive our salaries every 15th and 30th of the month.

Some receive their salary weekly while others even receive their salary every 5th (covering the entire previous month.) With all these deferring pay day cycles, it is imperative that you are aware of the EXACT DATE a short term pay day loan is due.

Most lenders simply count 7 or 14 days form the date you availed of the loan. Do you see what a potential 'disaster' this can be if this due date does not coincide with your pay day?

For instance, you get a loan on the 22nd of the month, the lender counts 7 days and your pay day loan is immediately due on the 29th. Hey, that's a day short of your actual payday!

What do you think will happen? The lender will try to withdraw the money you owe him (plus fees of course.)

He will then find out you have insufficient funds and (1) you get a penalty from the lender, (2) the short term loan is rolled over so you end up still owing him the same amount next payday, AND (3) your bank will put a non-sufficient funds (NSF) entry in your credit record. Ouch!