A payday cash advance a short-term loan that the borrower has to pay back on his next payday
. Sometimes the payday borrower uses a credit card to put the loan againist the credit card; in other words, if the borrower defaults on his or her payment than the credit card is charged. Payday loans are definitely worth it as shown in this article as these loans have many benefits to them. The payday loan process is explained in this article; the process is fairly simply. Lastly, payday loans from around the world are explained such as: Canada and the United Kingdom.
One reason to use payday loans is because the loan taken out has to be in-line with the paycheck of the borrower. This means the borrower cannot take out a loan way over what he or she makes. Another benefit to a payday cash advance is that the money is expected to be paid back after a short amount of time, so the borrower cannot rack up months of interest as its just interest between now and next payday. Yet another advantage to payday loans is that allows the borrower to use the money toward his or her bills until the next payday advance.
The basic idea of the payday loan is that the borrower recieves an unsecured loan that the payday borrower has to repay by his or her next payday. To get approved, the borrower usually has to provide verification of the payday's bank statements and pay stubs. In the tradition way, the payday loan borrower writes a check to the payday lender for the cost of the loan and dates the check for the borrower's payday. This means that on the borrower's payday the lender is allowed to cash the check. If this check bounces, than the borrower will be hit with more fees.
In Canada, payday loans are controled by usury laws; one thing that the interest rate must stay below 60% per annum as going over this percentage is punishable by law. Furthermore, there are laws in Canada about a cap on the the interest rates for payday loans. Payday loans are becoming popular among consumers in the United Kingdom in the last several years. The UK law states that payday cash advances have to have an effective annual percentage rate but payday loan companies in the UK can charge any amount for interest rates.