subject: Easy Cash [print this page] Most often, you read these ads popping out online, "EZ Cash Loans!", "Same-day Release Payday Loans - Low Fee!", "Easy and Confidential Payday Cash Loans..." But these are not only available on the Internet. You can also see several of these ads in the streets, on television and often hear it being advertised on the radio. These actually refer to short term loans, or being referred as the pay day loans, that can be availed in an instant.
So how do these short term pay day loans work? Let's say you need to borrow $100 and pay it on your next pay day. You just need to give the lender a post dated check for the principal amount plus interest charges. The lenders usually calculate it in two ways. First, as a percentage of the amount you borrowed, like 5% or 10% of the principal amount. Second, is through a set amount, like $10 - $20 for every $100 borrowed.
After you gave them the check, you'll receive your money right away. Sometimes, they will deposit the money to your bank account, depending on what you have agreed upon. When pay day comes, the lender will then cash your check, unless, you extend the terms of your loan. If you decide to extend your loan, you'll be charged additional fees, and these fees will accumulate until such time you are able to pay for your loan.
The Truth in Lending Act requires that all lenders, even those online payday loan borrowers must disclose the amount of loan in writing before you sign an agreement to avail of the loan. The lender must give you the information about the interest and other charges you are required to pay for that amount of loan that you have applied for, before you will be asked to sign for the terms and conditions governing that loan transaction.
