Payday loans are loans that are made in advance of somebody's paycheck, and they are usually used because they are quick and convenient. Find out why the cost of being late on a payday loan bill can be expensive with help from a financial planner in this free video on personal loans and money management.
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Hi, my name is Bill Rae. I'm with HBW of Florida and I've been in the finance field for well over twenty years. And today we're going to talk about payday loans. Well, let me first start off by telling you payday loans are a convenience but can be very deadly if you're not prepared. What is a payday loan? Who should use a payday loan? Well, a payday loan is simply a loan made in advance of your paycheck. There are many many businesses out there today that are capitalizing on this phenomena. My advice to you is be very careful. If you really truly need to get money and you have no alternative a payday loan is a quick and convenient way to make sure that you've got your bills covered. You have to weigh out for instance if you're going to be late on paying your electric bill and there's no other way other than a payday. What's the cost of being late on the bill versus paying for the payday loan. Sometimes it makes sense to go ahead and take it in advance. But whatever you do pay them off quickly. Use them sparingly. Don't get in the habit of using payday loans as an advance for every one of your paychecks or you'll be working for them and not yourself. So payday loans can be useful, but as in all instruments, know what you're doing, what your costs are associated with it. Seek outside counsel if possible. My name is Bill Rae. I'm with HBW of Florida and I'm helping you build wealth.