Ultimate Stockmarket Reviews

Archive for December, 2011

There is nothing scarier than being short on cash and unable to pay your bills. This feeling of helplessness is happening to more and more people as the economy continues to falter. Instead of not paying their bills and expenses, many people are turning to fast loans, also known as payday loans. These are short-terms loans that help cash strapped individuals with regular income get through times when cash is tight.

Payday loans have a negative reputation for some. This is due to the false impression that unfair and extremely high interest rates are charged. In fact, most payday loans only charge a flat fee and not high interest rates to get a cash advance. These flat rates compare very favorably to other potential alternatives like taking a credit card cash advance, or paying a bank overdraft fee.

Current rates for payday loans are about $15 for every $100 cash advance. If compared to the Annual Percentage Rate (APR) of bouncing a check, or charges for ATM or debit card, the cost of a payday loan is much less than half the cost. In addition, these fees can continue to mount if the bank is not paid back quickly, making the APR even higher. With a payday loan you’ll know the terms and conditions as well as the repayment schedule before you get the cash advance.

A payday loan is not for everyone however. If your cash needs are long-term, or stretch into amounts larger than a few thousand dollars, it might be wise to explore other loan sources. Payday loans also require that you have a regular income source, as well as a bank or credit union checking or savings account. Other requirements include residing in the United States and having a working telephone number. Those on active military duty are also not eligible for quick loans. For short-term cash needs, a payday loan can often be a lifesaver for those who need to cover unexpected bills and expenses.