Payday Loans Newfoundland
Even if you have the best payment plans, life can throw a curveball when you least expect it. Few people can avoid a financial emergency as there are many situations beyond our control. Accidents happen, and emergencies can pop up at any time.
When the unexpected occurs, you’ll need money fast. In this scenario, a loan from a bank might not be the best option since they have stringent criteria and a lengthy approval process.
Northstar Brokers is a trusted option to consider online payday loans in Newfoundland, if you live in the province. It’s straightforward to be eligible if you are employed and working for at least six months.
What Are Payday Loans?
This personal borrowing is effectively a salary advance. Payment is due, along with the interest and fees, when payday comes around again.
You can expect to incur a very high rate than other loans. For every $100 you borrow, the charge ranges from $15 to $20. So, if you ask for $1,000, your repayment sum is between $1,150 and $1,200.
How to Apply for a Payday Loan
Compared to borrowing from a bank, Northstar’s application process is straightforward and fast.
You can apply online. If you submit the required documents before 11:00 am, Eastern Standard Time, we will wire the amount to your bank account the same day. The waiting time is 24 hours if you put in your application after 11:00 am.
What Happens If I Default?
If you’re unable to repay your loan, plus charges, on your next payday, more interest will be added to the amount you owe. The compounding effect can lead to a massive debt if you’re not careful.
Pros and Cons of Payday Loans Newfoundland
As with any borrowing option, there are advantages and disadvantages. Here are some facts you should be aware of when taking a payday loan in Newfoundland :
Pros
- Quick approval: While bank loans have a very lengthy approval period, you can get your payday loan cash almost immediately after applying.
- No credit checks: It doesn’t matter if you have a bad credit score because we won’t review your borrowing history. As long as you meet our requirements, you’ll get the funds you badly need.
Cons
- Extremely high borrowing cost: A payday loan may be the best choice for an urgent situation. However, you’ll be paying an excessive amount in interest charges in addition to the borrowed sum. In terms of $15 to $20 for every $100, it appears that you’re only paying between 15% and 20%. However, the annual percentage rate (APR) could work out to 400%.
- Loan cycle: Due to the massive chunk the repayment will take out of your income, you might need more funds to cover your expenses. This situation could create a vicious cycle by adding debt to the one you already have.
You should only apply for a payday loan in Newfoundland in extenuating circumstances because you’ll pay extremely high interest on top of the amount you borrow. The total repayment sum could take a massive portion out of your wages, meaning you might have difficulty making ends meet. The last thing you need is to incur more additional debt.
Whenever possible, check out other funding options. You can always consult our experts at Northstar Brokers for a solution.