Payday loans have been getting more and more popular lately, probably because of how easy they are to obtain, combined with an economy that continues to struggle worldwide.
As people struggle to pay their bills on time, the easy access to cash with no waiting period and no extensive credit check makes these types of loans very attractive to the average American.
When A Payday Loan comes In Handy
For those who live paycheck to paycheck, there are many situations where payday loans may be the best option to get the money needed to cover all of life's expenses. Almost everyone has had an unexpected emergency like a surprise sickness that requires hospitalization, a car wreck, or even a bill that was forgotten. These things happen, and there are avenues to consider when looking outside yourself for assistance.
Years ago money would have to be borrowed from friends or family, causing strained relationships, but today a simple payday loan can take care of the problem quickly and easily.
How Do They Work?
The way payday loans work is quite simple. The amount of the loans typically ranges from around $300 to $1,500, and the lenders usually charge a one-time fee based on a certain percentage of the money borrowed.
Usually this money is to be paid back to the lender within 30 days, or about the time the next paycheck comes around. Some companies are more flexible with the time period for repayment than others based on your individual situation.
What makes payday loans so popular and convenient is that you can get the cash you need very quickly, usually within 24 hours or less. This means that if you have an emergency situation you can take care of it that moment, instead of waiting and possibly getting charged with late fees or worse.
How It Works; Payday Loan
After being approved for the loan, the lender will provide you with an amount based on your income and possibly your history with that company if you have borrowed from them before.
You then give them the date when your next paycheck will arrive and the details of your bank account, including account numbers. On the date specified for you to pay back the loan the lender automatically takes the money out of your account, which includes the loan amount and any fees and interest charged. This date is often negotiable.
Another great thing about these types of loans is that almost everybody can qualify. Most companies do not do a credit check when you apply, so bad credit does not mean you won't get the loan. The qualifications to obtain a payday loan are:
- You have a job with a fixed income and have been working for the last six months for a company that is stable and reputable.
- You have a bank account that is active.
- You are at least 18 years of age.
If the economy continues to struggle and you find yourself in a situation where you need funds quickly and easily, payday loans could very well be the answer to your problems. Visiting websites and getting some general ideas about online loans means taking back your power. Everybody needs a little help sometimes and these loans are often the most convenient way to get it.
Now granted they are not the answer to everyone, but those who have nowhere else to turn, and literally no lenders will accommodate them. This is when they can be a godsend to some individuals. They are not the answer to long-term debt but an answer for a couple of weeks until you get paid.
If you are looking to get the lowdown here on payday loans, you are in luck; I am an established writer in the small loans field, specifically in educating consumers on payday loans. I am based in Richmond and write for over 20 of the top blogs on the net.