The Many Reasons for Payday Advances

by: Ignacio Morales


Thirdly, one might not have the time it takes to go through the bank lending process. Payday loans are fast and easy.

Here are some ideas of when payday loans should be considered:

1. Auto repairs that can't wait till next payday.
2. Urgent medical expenses that need to be paid for up front before services are provided.
3. Prescriptions
4. Payments to creditors that have little, or no, grace period and the regular payment might be late.
5. When money is coming but urgent needs still need to be handled such as food and utility bills.

There is a difference between having an urgent need and simply wanting cash in your life to make things easier. The fact is that payday loans can get quickly out of hand if you get into a habit of taking them for things that aren't priorities. I have known people to take payday loans out for opportunities that will pass them by before they can collect money to invest, or a death in the family that requires some spur of the moment traveling.

It is not advisable to take payday fast cash loans for little things that can add up and cost you more money in the long run. And bigger ticket items typically need more traditional bank loans.

Besides, most payday lenders have a low maximum amount you can borrow. Some are $500 and others are closer to $1500.

It is a fact that debt in our country is a serious problem. So be forewarned if you choose to take a payday loan for not-so-urgent situations.

What is involved with a payday loan?

1. The process of finding a lender
2. Discussing their rates and fees
3. Proof of income
4. Proof of bank account
5. Post-dated check or post-dated pre-authorized draft of your account to repay the loan
6. Your signature on the contract

Some things to consider when taking a payday quick cash loan:

1. Are the interest rates and fees comparable other lenders in your area?
2. What are the rollover, or extension, fees?
3. What repayment options are available to you?
4. What are all the non-payment, late payment penalties?
5. What are the laws in your state regarding payday loans?

Be a smart consumer and find these things out. Communicate with your lender. This industry provides a resource for people who otherwise wouldn't be able to get cash as quickly through a bank, or who have bad credit and need cash quickly.