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Long term payday loans – is it better or worse?
We have known a lot of good features about payday loans: quick cash release, less demand for requirements and basic criteria for approval. Those features are quite convincing and convenient to the borrowers. That’s why a lot of people have gotten into payday loans.

Aside from those features, you can also pay your loan up to 12 months if you wish to. If the repayment of the loan reaches up to six months and up, this is considered as long term payday loans. The longer the repayment time, the lesser the value of the repayment fee. But is it really beneficial? Does long term payment worth it? Here’s how we’re going to answer it.

One of the obvious disadvantages of payday loans is the high interest rates that they put into every repayment fee. This is considered as a culprit for the borrower’s side. The surface rule of the repayment is quite obvious: the lesser the repayment time, the higher the payment fee that they have to give back. So some people decides to not get a short repaying time because it may hinder to their budget and leave them short-funded, rather choosing the long term, may help them manage their payment, and be able to pay the loaned cash properly.

It may seem that paying loans on a long period of time would be a less burden to your budget. But if we’re going to think the overall cost of the repayment, we would realize that we have given more money compare in short periods. This is the major disadvantage of long term unsecured loans.

Long term payday loans may cause us to have longer commitment and responsibility to the lender. That there may be a chance that we will encounter unexpected issues that will affect our responsibility regarding to the loan. for example, when we chose to have a long time repayment, we would have a big chance of getting other fees like penalty fees and service charges from the lender that will add up to the total repayment cost of what have loaned, if we came to the point that we are unable to pay the repayment fee in the right time. This may get you to have more problems eventually, like having a bad credit history once you end up dismissing your payment. This may lead you on having a bad reputation that will affect you in terms of financial things like applying for a secured loan in the future.

But the good thing about long-term payday loans is that, like what have stated earlier, will give you the option of paying less amount. If repaying the lender for a short period of time with a high repayment fee will cause you to short on budget, it is better to get the option of the long term repayment. Also, though you can spend less money when paying your debt in a short time, but on the other side it will take up a large portion of your monthly pay check that it may cause you not to make the ends meet, you may get into the state of being broke again and get tempted to apply for another loan again that will add up to your liabilities. Even worse, if it may have happened that you can’t pay your loans, this will cause you to have a bad credit history that will lead you to have problems regarding to financial things, as stated earlier. So on the other hand, short repayment time has its disadvantages too.

Now, back to the question: is long term payday loans better or worse? The answer in our side would be, it depends on the perception of the borrower. Lending companies give you options when repaying your loan, this kind of issue is discussed first before getting into the deal. It depends on how the borrower will handle the responsibility of repaying the loan, as what is stated earlier, both short term and long term repayments have its disadvantages, so each is considered a neutral choice.

So if you are planning to get a payday loan, you should be aware about how it works, like the repayment time period and its consequences. You have to make a smart choice regarding to your situation, of what will be more convenient for you. Because it is better to think about things carefully and clearly before you decide to get engage to it, or it may cause you a more problems instead of a solution.

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