A payday loan is a financial bridge to most of those who use it. The payday loan becomes the "bridge" to paying everyday expenses as well as financial emergencies. Payday loans are used for paying rent and for buying groceries, as well as for emergency car repairs and medical expenses.
An average of 7 out of 10 people not only use, but rely on a payday loan or a cash advance for everyday expenses. These payday loans are not used as one quick fix. Many borrowers seek extensions and tend to keep borrowing the same amount over and over again. This phenomenon keeps these people in debt for months at a time. These are very high cost interest loans that can grow to large amounts if not payed off immediately.
Many people are turning to payday loans as a financial bridge to get from one paycheck to the next. A payday loan can be a great option for millions of Americans who hope to manage their financial obligations. About 5.5% of all Americans have used a payday loan at one time or another; twelve million people in 2010 alone. Typical customers of payday loans are parents, divorcees, and of course the low income consumer.
Parents are more likely to use a payday loan than adults without children. The annual income of these households is usually less than $50,000. Also, divorcees are more likely to use a payday loan than married couples or single people. The vast majority of people that use a payday loan do not have a 4 year college education and earn less than $40,000 a year.
White females between the ages of 25 and 44 are the biggest fans of payday loans, but the African American is not far behind. Payday loans are also becoming a household name for the low income, no credit consumer.
The loans that are granted are not for a large amount of money. The typical loan is between $100 and $500 and the lenders fee is usually around $15 for every $100. The duration of the loan is two weeks. However, most of the consumers utilizing a payday loan take out about eight loans a year, so they are actually in debt most of the year. These consumers spend about $520 in interest a year, so the payday loan is similar to a high-interest line of credit and not just a one-time fix.
As you can imagine, most people who use a payday loan do not realize how much money and debt they are getting into. The payday lenders are disclosing the terms and conditions of their payday loan; however, the borrowers are in such haste to receive the instant cash, that they do not internalize the costs or how it will affect their budget. The borrower gets in over their head and the cycle of high interest and debt continues for months.
A payday loan, if used as intended, is the least expensive option with the easiest requirements. If the prospective borrower has too low of an income, than the borrower should not use this type of loan. In any case, the prospective borrower needs to be educated in the ways of the payday loan to have good experience and use the loan the way it was intended; short-term and temporarily.
Whether you have a good credit or no credit, getting a loan is still possible. Traditional bank loan is one of the hottest loan products that people will choose. However, this type of loan is not suitable for everybody, especially for people without a perfect credit. So, what we can do in case we don't have a good credit? There are some other loans that we can get it without having a good credit such as bad credit payday loans.
Cash advance loans is a short term loan that can provide a fast way for people to access cash easily. There is no long term commitment and no fax require. A lot of people afraid by faxing personal documents to the lenders may cause their personal information expose to the public. So if you are getting a bad credit payday loans then this will not be your concern. The process time for getting a fast cash advance is also simple and fast. There is no complicated credit check and a lot less verification requires. It is definitely perfect for people who need cash in rush while their credit is not perfect.
The good thing of getting a traditional bank loan is their reputation and help saving your time to shop around since most of them are popular and they are more trustable than all other types of loan. However, the problem of getting a loan from a bank is time consuming, most of the people need cash in rush and bank loan cannot provide such kind of service.
Getting a cash advance loans are not as difficult as people think. All you need to is to fill out an online application and submit it. Within couple of minutes, you will get an instant result and once you got approved. Cash will be deposit into your bank account within one business day.
There is no perfect loan in the market that you can find. Just get the loan that you can afford to pay it back. Payday cash advance can be your money buddy if you can use it in the right way. Never ever over use it. Payday cash advance definitely is not your long term finance solutions. Make sure you are able to make the payment before you go for it, if you have any questions or concerns regarding the loan, you should contact your direct lender.
There are many types of loan that you can choose from the market but which one is good for you? Bank loan or some short term loan like fast payday loans. There is no right or wrong or any standard to get a loan. Whether you get the Bank loan or the short term loan, it is really depends on the person. To someone who has a good credit, bank loan may be good for them however, if you don't have a good credit, then you should go for quick payday loans, a short term loan.
Short term loan is also call convenience loan. Like the name it said, fast payday loans is a simple and convenience loan that almost everyone are qualify to get it. Whether you have a good credit or bad credit, you don't have to worry about because most of the instant payday loans lenders don't check your credit, so this is absolutely not a problem when it comes to getting a fast payday loans. There is thousands of quick payday loans company out there so which one is legit or which one is good? Here are some tips that can help to choose the right instant payday loans company.
Go online and visit some forum and see how people rate the quick payday loans company.
Visit their website and see if they look professional and also check if they provide any contact information such as physical address on their site.
Ask anyone you know if they have experience with the instant payday loans, if so, ask for reference.
Ask the quick payday loans company in case if you have any questions or concerns about their loan program.
Call the loan company and check if they do a good job in customer services.
Once you have done all the above research, this can definitely help you to find a right and legit fast payday loans lender. Make sure you understand about the agreement and contract before you sign them, make sure there is no hidden fee and ask for all the scheduling period before you make the deal. You don't want to borrow the money today and having trouble to paying them back tomorrow, right?