Check cashiers, finance companies and others are making small, short-term, high-rate loans that go by a variety of names: payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans. Payday loans are loans that are taken for a short duration of time and need to be paid back on the next payday. Payday loans are useful if you are experiencing cash flow problems or if you need cash for an emergency but borrowers must remain aware of the high interest rates attached to these loans. Payday loans are established with these folks in mind and they are the reason fax less payday loans are available.
A majority of Payday Loan companies offer convenient payday loans and you usually get the money within a day or so. You usually have to fax paperwork to the company, and, if approved for a cash loan, the money is wired (additional cash wire fee) to your account within 24 hours. But now, you can go online any time of day, fill out a quick and simple form, and get the money that you need almost instantly. When you apply online for payday loans, your application is processed in just minutes. Once you are approved, the amount of your loan is transferred overnight into your checking account; you have the cash the next day. With service like this, payday loans are virtually just minutes away.
Because people who use payday lenders are usually in desperate financial situations already, they may have trouble repaying the original loan and they continue to extend it until they’ve paid more in fees than the amount of their original loan. You should keep in mind that the payments towards this loan should be made on time otherwise you would be charged a higher interest rate and fees on the loan. But if the customer is unable to pay off the entire loan with his or her paycheck, the outstanding balance incurs late charges and additional interest fees. If the fees cause you to have insufficient funds in your bank account, you’ll be charged a $25 returned check fee by the company in addition to your bank’s returned check fee. If the borrower continues to have financial problems and cannot pay back the loan as promised, the interest keeps building and so does the debt. If payday loans roll over three times, the accrued interest can equal or surpass the original amount of the cash advance. If a payday loan is your only choice, make sure you understand the terms hidden in fine print and are aware of all the fees.
Many consumers literally live from paycheck to paycheck, which means any unexpected expense can cause financial disaster. If you are stuck in the middle of a pay cycle, you just might not be able to come up with the cash you need. Cash Advances on Credit Cards Credit card cash advances, which are offered at about 30% APR, are much cheaper than getting a payday loan. Another alternative is a credit union loan ,credit unions offer small, short-term loans to their members. Unfortunately not everyone can afford to wait for emergency funds and not everyone can boast a flawless credit history that will let them qualify for a bank loan.
A Growing Industry In a nutshell, payday lending is a highly profitable business that encourages people to “pawn their paycheck” and become trapped in a “downward spiral of debt. Payday lending or making payday loans is now a booming industry, and with life getting tougher for many people each and every day, it’s only ever going to keep expanding. Payday lending is often regarded as something predatory and it is of the common belief that payday customers are being used as fodder by the money hungry payday lenders.