With the New Year upon us and Christmas bills starting to pile up, countless
Americans are wondering how they will pay the bills and cover the taxes due in
April. Payday loans
are one solution to individuals feeling the crunch of bills and taxes. A cash
advance will enable you to pay those bills and take care of impending
circumstances without over-extending your credit cards or racking up
non-sufficient fund fees. This source of fast cash is used by many Americans to
eliminate the long-term high cost of credit card interest rates while providing
an instant cash solution for their pressing needs.

Why would you consider a payday loan? That is the question many American workers
ask when they are looking for a solution to their bills, and unfortunately,
those working class individuals without pristine credit are shut out of
traditional options like low interest rate credit cards and home equity lines.
The payday cash loan has become a practical option for individuals experiencing
a financial emergency.

To meet the requirements for a payday loan, most cash advance services require
you to meet a few qualifications. First, you need to be at least 18 years of age
and a United States citizen. Second, you need to have a job or be able to show
that you receive some kind of regular income, which brings in at least $1000
each month. Third, you must have a checking account (a few will qualify you with
a savings account) to finalize the transaction. Some companies will include
additional requirements, but these are the most common prerequisites to obtain a
payday advance. If you meet these conditions, you generally have to fill out the
company's online form to find out how much you will qualify to receive. They,
like nearly all lending institutions, will gauge the amount you may borrow by
the amount of your income, although, unlike most lending institutions, these
companies are much more lenient in their lending practices. In general, the
majority of the online payday advance companies do not disqualify you because of
bad credit, bankruptcy history, or prior bad checks.

There are no long lines and no long delays while the company reviews your
application. In addition, this process takes place in the comfort of your own
home or office, not the cold atmosphere of a bank. Most companies have a
relatively simple and quick online form for you to fill out, and once your loan
is approved and you speak with a representative, the company deposits cash
directly into your bank account. Make sure you review the website completely,
and read the details. Do you find the fees fair, and are the terms acceptable?

In order to receive a
cash advance, companies require you
to have a bank account because when it is time to pay back the loan, the company
will simply deduct the principle and fees from your account during your next pay
period unless you ask for an extension. Now the fees seem extremely high for
this service unless you do the math on how much it will cost you not to take the
short-term loan. What did you pay for your last bounced check? Most banks charge
between $25-$35, and often times merchants charge a matching fee. The expense of
a payday loan does not sound nearly as bad once you consider the bank charges
and credit reporting that takes place when you bounce a check. If your credit
card company were going to charge you a $29 late fee and raise your interest
rate, wouldn't you be better served to take an advance on your paycheck rather
than take the long-term consequences of higher interest rates? Of course, there
are payday loan companies that are out there to take advantage of unsuspecting
consumers, and that is why you must do your homework and make sure the fees and
terms are acceptable.

Lately, many news articles have criticized the payday loan industry, yet these
same reporters have not questioned the excessive fees and interest rates charged
by traditional lending institutions. Obviously, it is in the best interest of
banks and credit card companies if consumers continue to accept their
Machiavellian policies (remember Machiavelli advocated deceit to gain and
maintain power). Non-traditional lending companies challenge this totalitarian
authority and give the working class another option besides paying outrageous
credit card fees, bank fees, and unwarranted interest rates.



 

Danielle Peck is the partner and research specialist for www.skitastic.com, a
website that provides information and resources on cash advance
and payday loans.
You can visit the website at: http://www.skitastic.com.