Nowadays, many lending institutions provide personal loans and payday loans. There are dangers associated with payday loans. However, payday loan interest rates are very high. In addition, payday loans only have one payment, a balloon payment that is typically due within two weeks from the time the loan originates. Personal loans allow borrowers to pay back the loan over a longer term of months and even years.
People are often so desperate for cash that they don’t ask the important questions about the details of their loans. Make sure you find out all the terms of your loan prior to committing. You don’t want to be stuck with a loan that will end up costing you more than you borrow.