If everyone had enough money for the things they wanted and needed, the world would not need payday advance companies. People would not have to seek emergency short term cash in the form of a cash loan or payday advance at a payday loan business. This is real life. People have emergency cash needs, and often have limited options. A fast cash payday loan company offers help for people who need money fast, as long as they meet the lender's criteria. It is quick, it is easy, but it is definitely not cheap. However, it can help you out when you need it most.
Here's how a cash advance (also known as a "cash loan", a "payday advance" or a "cash advance) works: a person in need of fast cash contacts a cash advance business (at a retail or brick and mortar store, over the phone, or over the Internet). A loan application is filled out (often referred to as a "TILA" or "truth in lending agreement") and the customer promises (via a signed contract) to repay the loan amount. The loan amount is usually due on the customer's next payday. Often, the cash advance business gets an agreement that they can debit the customer's bank account on the day the customer's paycheck gets deposited. The customer gets their loan principal (usually betwee $100 and $500, but some lenders provide $1500 cash advances). On the customer's next paydate, the balance plus a fee is debited or deducted from the customers account (or the customer's paycheck is cashed). One problem with cash advance loans is that they are very short term (usually between 7 days and 31 days long) and the fee is high. This results in a very high percentage rate cost.
These loan services are meant to be used only in an emergency. A payday loan is a loan against your hard earned paycheck... that means that you are paying someone for the privilege of getting your next paycheck. When payday arrives, you will need to bring cash to pick up your check that is being held. If you do not return, then the business will deposit the check (or will directly debit your account). Some payday cash companies require that you come in and pay cash for the check. Such places as Cash Advance America will only allow you to have a check deposited a few times before they revoke your loan privileges. You need to pay attention to the rules at each cash advance company.
While you are paying attention, you will also need to be keeping a careful eye on your incoming money. Do not stretch yourself too thin, in case you find yourself in need of the cash advance again. The more times you take it out, the higher the amount of interest you will pay. They make their money on the interest and love to have repeat customers come in for more advances.
If you do not truly need the money (ask yourself "is this really an emergency situation?"), then don't waste your hard earned paycheck on a cash loan from a payday loan company. You might find yourself in over your head and unable to repay the debt when it comes time. If your budget is that thin, then creating an extra bill is not the answer. Pay that loan off as quickly as possible because you are throwing away money if you don't. Money that could have been saved for a rainy day.
Kurt Lehmann writes financial services articles for http://www.nextdaycheck.com, http://www.pdlsecrets.com and http://www.stopchex.com.
Here's how a cash advance (also known as a "cash loan", a "payday advance" or a "cash advance) works: a person in need of fast cash contacts a cash advance business (at a retail or brick and mortar store, over the phone, or over the Internet). A loan application is filled out (often referred to as a "TILA" or "truth in lending agreement") and the customer promises (via a signed contract) to repay the loan amount. The loan amount is usually due on the customer's next payday. Often, the cash advance business gets an agreement that they can debit the customer's bank account on the day the customer's paycheck gets deposited. The customer gets their loan principal (usually betwee $100 and $500, but some lenders provide $1500 cash advances). On the customer's next paydate, the balance plus a fee is debited or deducted from the customers account (or the customer's paycheck is cashed). One problem with cash advance loans is that they are very short term (usually between 7 days and 31 days long) and the fee is high. This results in a very high percentage rate cost.
These loan services are meant to be used only in an emergency. A payday loan is a loan against your hard earned paycheck... that means that you are paying someone for the privilege of getting your next paycheck. When payday arrives, you will need to bring cash to pick up your check that is being held. If you do not return, then the business will deposit the check (or will directly debit your account). Some payday cash companies require that you come in and pay cash for the check. Such places as Cash Advance America will only allow you to have a check deposited a few times before they revoke your loan privileges. You need to pay attention to the rules at each cash advance company.
While you are paying attention, you will also need to be keeping a careful eye on your incoming money. Do not stretch yourself too thin, in case you find yourself in need of the cash advance again. The more times you take it out, the higher the amount of interest you will pay. They make their money on the interest and love to have repeat customers come in for more advances.
If you do not truly need the money (ask yourself "is this really an emergency situation?"), then don't waste your hard earned paycheck on a cash loan from a payday loan company. You might find yourself in over your head and unable to repay the debt when it comes time. If your budget is that thin, then creating an extra bill is not the answer. Pay that loan off as quickly as possible because you are throwing away money if you don't. Money that could have been saved for a rainy day.
Kurt Lehmann writes financial services articles for http://www.nextdaycheck.com, http://www.pdlsecrets.com and http://www.stopchex.com.
No comments:
Post a Comment