subject: Financial Relief Through Payday Loans [print this page] The economy may be getting better very slightly, but the average American is still suffering. With our economy in this state, it is difficult for the average person to make ends meet.
Everyday hardworking people are faced with the reality that they are simply not making enough money in a single paycheck to stretch till their next one.
When things come up that are sudden, like car repairs or a bill that is due between checks, there is a financial solution in place that a person can turn to when in serious need of money - payday loans.
Payday loans are loans that can be applied for with a far faster approval and distribution rate than other traditional loan services.
Now, granted, the money for the loan needs to be paid back with the next paycheck to the person borrowing a payday loan may still be short on money.
The good thing to payday loans is that a person can get one to take care of something that cannot wait. This will buy them time to earn the money, or find it elsewhere, to pay of the payday loan.
It is always good to have a plan in mind of how you are going to pay your loan back before you even apply. Payday loans are considered short term loans for small amounts and they have certain fees associated with them that may be considerably higher than fees associated with traditional loans.
The average fee for a payday loan is $15-$20 for every $100 borrowed. This can be kind of high if you need a lot of money, but you not find any financial institution that will be easy and fast like the payday loan industry.
You will be paying for the convenience. And besides, these loans are not meant to be taken frequently and frivolously. A good lender will advise you to borrow only what you need.
The limits for these loans vary from state to state. They can be anywhere from $100 to $1500.
You will have typically two weeks to repay your loan, but you can determine the schedule of repayment with your lender. You can do this by writing a post-dated check or authorizing a post-dated withdrawal from your bank account.
If you are unable to pay your loan back when contracted to, you can contact your lender to ask for an extension, or roll over. If you do though, you will be charged additional fees that could really hurt you in the long run.
That is why it is essential that you know how you are going to pay your loan back and stick to it. Payday loans are accessible to people even if they have poor credit or if they have no form of collateral.
Good credit and collateral are not required to apply for a payday loan. Traditional lending options can take days to approve and you usually need to be forthcoming with all of your income and your debts.
They pull a credit history too. Payday loans don't do this. The lender will not even ask you what you need the money for, unless it is just from sheer curiosity.
The requirements that payday loans do have, however, are that you have steady employment; they will need to see some pay stubs.
Check with various lenders to compare their rates and requirements. You need to be at least 18 years of age and have a bank account. That is it. You can be approved in as little as a day.
