What's Special about a $1000 Payday Loan?

A $1,000 payday loan is like any other payday advance; it will come with very high interest rates and high financing fees. Typically, payday lenders set the "no fax" limit at $1,000. This is the maximum amount you can receive without documenting the debt on paper.

Dangers of Payday Loans

The main danger of payday loans is the very high interest rates and very short contract periods. Borrowers who take a $1,000 payday loan will typically owe between $1,200 and $1,600 payable in full within 30 days. If they cannot make this payment, the borrowers will face extremely high financing fees that can lead to a detrimental debt cycle.

Alternatives to Payday Loans

Instead of taking a payday loan, consider where you can use credit cards and if cash is needed. Credit cards are more flexible than installment loans, and you will have an extended period of time to pay down the balance. If you need cash, try a high risk personal loan from a bank or lender. This sum will also be repayable in installments instead of immediately. It is best to borrow from family and friends before seeking a payday loan; only go to a payday lender after exhausting all options.

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