Payday Cash Advance
A payday cash advance is an emergency cash loan taken out for the purpose of covering an unexpected expense before the next paycheck arrives.
Payday cash advance loans are available through payday lenders found on the Internet and at established store front locations. The payday cash advance loans can be obtained quicker than a bank or credit union loan, but with a higher finance charge. The payday cash advance loans are available for 7 to 30 days and the payback is timed to coincide with the applicant’s next paycheck arrival.
The short duration of the loan and the higher than normal finance charges makes payday cash advance loans very expensive. An applicant applying for a payday cash advance loans usually have no other option for a cash loan. Their credit is usually questionable, making them ineligible for a bank or credit union loan.
The finance charges for payday cash advance loans are usually between 15 and 35%, depending on the lender. It is worth comparing payday cash advance loans to find the best finance rate possible. The applicant should also check out the fees associated with loans, especially any late fees and penalties. The fees can drive up the cost of the loan, making it more of a hindrance than a help.
Payday cash advance loans can be used for any purpose, but were designed to be used in an emergency to cover an unexpected expense. The loans can be sued to cover an emergency car repair or to replace a household appliance that has lost its will to function. The loans can be used to purchase medical equipment for the home or cover the cost of necessary medication before health insurance kicks in.
It is not advisable to use payday cash advance loans for a non emergency event. A vacation is not an emergency nor is a pizza and beer fest for the neighborhood. Payday cash advance loans are not meant to be a long term solution to chronic financial shortfalls. The borrower, who finds they rely on payday cash advance loans on a regular basis, should take a look at their financial situation and seek the advice of a money management expert. The borrower most likely has money challenges and has to establish a budget on which to live or develop a budget on which to live.
Sometimes the answer to cash flow problems is to earn more money and establish savings to cover unexpected expenses. This will be preferable to taking out payday cash advance loans and paying for the loan along with all the associated costs that come with taking out a loan.
If the payday cash advance loans are not paid back on time, the lender will impose penalties and fees that will just add to the cost of an already expensive loan. If the borrower extend the loan, additional finance charges will apply and the soon, the borrower will fall into the never ending circle of debt and not be able to get out.