Many of us have experienced the gut-wrenching sensation of
coming up short at the end of the month. What can a person do if an unexpected
accident or other life event is going to cost more then they have at hand? One
solution in a pinch is a payday cash advance. These are short-term loans that
are designed for speed. You quickly get the cash and you are expected to repay
it in full immediately upon receiving your next paycheck.
Obviously the privilege of borrowing money has a price. The
fee will depend on where you go for a loan. In some cases, the fee is worth
paying because it prevents bigger problems like eviction, car repossession, or
it provides disaster relief. However, it is very important for a person to avoid
these loans if it is likely that they will not quickly have the means to repay
the lender. Unpaid loans will most likely result in heavy fines. It is also
likely to complicate a person's financial identity and relationship to their
bank.
Traditionally, a payday cash advance works like this: the
lender is asked to provide pay stubs or bank statements proving the likely
ability to repay. They are also asked to provide a post-dated bank check for
the borrow amount plus fee. They are expected to appear in person to repay the
loan; the lender will attempt to cash the check if they fail to appear. Should
bank funds be insufficient, the borrower will face stiff fines from the lender
as well a bounced check fee from the bank.
Because these loans are very short term, it is usually best
to think about the borrowing fee rather that attempting to calculate APR. It is
advisable that a person judge whether this fee is worth paying against the
benefit of borrowing the money. Under no circumstances should a person consider
this kind of loan unless the ability to repay within the set time frame is
reasonably certain.
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