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Fast Cash Payday Loans Information (PDF)

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					Fast Cash Payday Loans Information

By Lacy R.



In today's world of a decreased job market, high interest rates, and bankruptcy around every
corner, it is easy to get wrapped up in statements such as, fast cash, no fees upfront, and no
credit checks. These words make it seem like all of our financial struggles suddenly have a quick
fix. Payday loans and cash advance loans use these very words to entice people and give them a
quick and easy solution to their money woes. Although these programs do hold true to their
words and they indeed do give you fast cash, they are by no means a permanent solution to a
hopefully temporary situation.



In essence, a payday loan is a way for a borrower to receive their paycheck in advance in order
to pay their expenses. The borrower can either go to a payday lending store to receive the loan
or they can apply online through an internet lending company and receive sometimes up to
$1500. In most cases the borrower must present a copy of a check, employer information, bank
information, and their Social Security number. If processed online, the loan will get direct
deposited in their account. A couple weeks will then pass and it will be time for the borrower to
repay the loan. However, such a situation does not pan out penny for penny. On top of the loan
amount, the borrower will also have to pay a large interest rate of 15 to 30 percent for that two
week loan period. That comes out to 390 percent to 780 percent of an annual percentage rate.
They will also have to pay a loan fee which is normally around $15 for every $100 borrowed.



In the present internet driven world, the majority of payday loans are most likely applied for
and processed online. Many companies such as Personal Cash Advance, Cash Net USA, and
Personal Money Store make it fast, easy, and accessible to cover your expenses when money is
tight. Not only do they promise to get you the money you need but they vow to do it in only a
couple of minutes. Many people today are attracted to the idea that everything they need is
available to them at the click of a mouse. Therefore, companies that operate completely on the
internet and with fast results will really appeal to such borrowers.
Personal Cash Advance is one of the online companies that offer instant cash to those who
need to now. While many people might know that by getting into such an offer they will be
facing high interest rates, such companies still try and sell their service by stating that
"customers choose payday advances to cover small, unexpected expenses while avoiding costly
bounced check fees and late payment penalties." At personalcashadvance.com you can, "get
your cash direct deposited overnight, apply and process your loan completely online, have
flexible payment options, and the whole experience will be fast, easy, confidential, and secure."
Although all their words hold true in such luring advertisements, does the end really justify the
means? For some it might. When those unexpected expenses come up payday loans can
absolutely help you get through those couple weeks until you can get back on track. But for
others this short term quick fix could make a long term problem if it is time to pay the loan back
and the borrower still does not have the money. Just like any other expense owed, the
company that loaned the money will attempt to get their payment and if the borrower does not
have sufficient funds it could result in more fees and more problems.



Creditloan.com offers a wide variety of services such as auto loans, cash advances, personal
loans, and credit reports. However, aside from such services, they offer tons of information and
tips about such loans and financial situations. Through their own services and many archives of
articles, this online company can help provide you with both service and knowledge which is
crucial when dealing with financial hardships. In their article stated, 'Payday loans can further
you into debt' creditloan.com provides consumers with the information they need when
considering a payday loan or cash advance. While they state that in the case of an emergency
such loans can work just fine, they also persuade borrowers to pay attention and read all the
fine print so that they know exactly what they are getting into.



The article states that, "Once the money gets deposited in the borrower's salary account the
next month, the check that the lender has with him is cashed. The check amount includes the
fees, interest rates and other costs associated with the payday loans. The administrative fee on
the loans is high and a borrower, at times, unknowingly pays more than what is asked for. This
creates a dent in the financial life of the borrower."



Therefore, while such loans can be a savior in a small and unexpected emergency, for those
borrowers who will not be able to supply the funds by the next pay check, plus some, such
loans can just further your financial dilemma.
The article further goes on to state some tips when thinking about and applying fro a payday
loan. These tips include, researching interest rates and trying to find the lowest rates, read all
the terms and conditions so that you know all of the rates and fees attached to the loan, make
sure that you are only getting a payday loan when absolutely necessary and you will be able to
pay it off in full at the end of the month, and never get such loans more than one month in a
row otherwise you will be facing even higher fees and interest rates than before.



Aside from receiving their paycheck in advance through a payday loan, a cash advance is
another quick cash alternative for unexpected expenses or when you suddenly find yourself
without a positive balance in your bank account. The main difference between a cash advance
and a payday loan is a cash advance is a loan that is taken out against a person's credit card or
their line of credit. When a person takes out a cash advance the interest rate that is applied to
the cash advance is normally higher than the interest rate applied to their monthly charges.



The Payday loans and Cash Advance Consumer Guide is a great resource for learning about such
loans, their pros and cons, and helping consumers decide what is really best for them and their
financial situation. With everything from definitions to tips to state laws, this guide is crucial for
those considering a payday or cash advance loan.



While this website does give the positive sides of such loans, they do not shy away from the
consequences of getting into such a loan. They state their pros of such loans as, "such advances
are easy to obtain, a credit check is not necessary, a payday loan or cash advance can be
approved and processed quickly and funds can be received the next business day, they require
no collateral, such loans and advances require less paperwork than traditional loans, payday
loans and cash advance companies are easy to come by both in store and online, and such loans
and advances provide that quick cash one needs when something unexpected happens."



As stated before, this company states the consequences of such loans and advances as "having
very high fees and interest rates, if the loan or advance is not repaid the borrower can quickly
go into very high amounts of debt, some payday loan and cash advance companies utilize
unscrupulous, unethical and, sometimes, illegal means to collect on defaulted loans, such loans
do not solve long-term financial problems but only help in the short term, they are illegal in
some states, many payday loans and cash advance companies make borrowers sign contracts
stipulating terms that are highly favorable to the lender and not the borrower, and some
payday loan companies have been known to resort to unscrupulous and unethical means in
order to collect on a loan."



The consumer guide also offers a wide variety of information regarding state laws by stating
that, "Federal laws governing small loans were first developed in the early part of the twentieth
century. These laws arose in response to the problem of loan sharking. Today, payday loans are
regulated under state laws. Whether or not a payday or cash advance is legal where you live,
depends on the laws and regulations of your state."



Currently there are 23 states that have laws legalizing and regulating payday loans and cash
advances. In such states, licenses and registration of the loans and advances are required for
the companies to have in order to carry out such processes legally. Included in licensing and
registration, many states also have regulations and restrictions, "prohibiting payday loan
rollovers, a maximum number of payday loans that any consumer may have at any given time,
and prohibiting payday loan companies from filing criminal charges against consumers who fail
to pay their debts." Therefore, with proper placement of such rules and regulations, borrowers
can apply for and receive loans and such loans are monitored in a legal and organized way. The
states with these additional restrictions include, "Arkansas, California, Colorado, the District of
Columbia, Florida, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri,
Montana, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Utah,
Washington, and Wyoming."



The Payday Loan and Cash Advance Consumer Guide also offers a great set of 10 tips for
borrowers to remember before applying for a payday loan or cash advance:



1. Always try and repay your payday loan or cash advance in full when it is due without
extending it.



2. Make sure you read the fine print of any payday loan or cash advance contract before you
sign it. If you do not understand anything or have doubts, do not sign.
3. Before obtaining a payday loan or cash advance, check with the Better Business Bureau to
see how reputable the company is and if it has any complaints.



4. Always consider alternative loan sources before you decide on a payday loan or cash
advance. Consider family, friends, your credit union, a local bank, even a credit card.



5. If you intend to obtain a payday loan or cash advance, make sure you have access to your
recent employment pay-stubs as well as your bank account information.



6. Be sure to know exactly when your payday loan or cash advance is due and take the
necessary steps to repay that loan on time.



7. Start saving an emergency cash fund of, say, $500. That way, you can avoid payday loans in
the future.



8. Unless you use payday loans and cash advance loans very sparingly, we strongly suggest
going for credit counseling in order to learn how to successfully budget and save.



9. Beware of bounced checks when you have insufficient funds to repay a payday loan or cash
advance company. These fees can add up quick and can sometimes be quite high. In addition,
your bank might also charge you fees.



10. File a complaint with your state agency if you feel you have been treated unfairly or illegally
by any payday loan or cash advance company.



Everyone has financial worries, problems, and dilemmas at some point in their life. And in
today's society when financial woes seem like a trend that will never go out of style, there is no
reason to feel alone when money gets tight. However do not get caught up in the bright
advertisements for fast cash and overnight direct deposit. Know exactly what you are getting
yourself into and before you get into it make sure that in the short term you will also be able to
get yourself out of it.

Same Day Loans

				
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