Paying Back Payday Loans: Timing Is Everything

When it comes to money lending, payday loans are becoming one of the most popular alternative solutions to high-street bank loans. However, like all loans, they do have to be paid back at some point and in the case of payday loans, paying them back on time is imperative. In order to help with the repayment process, it is always prudent to understand just how payday loans are made and more importantly what you, as a consumer needs to know about the whole process.

The first thing that a consumer will need to understand is that a payday loan is designed to be paid back in one lump sum and over a period of no longer than one month. This means that there are no installments for the borrower to worry about, thus allowing them to better focus on paying off their loan right away and staying on top of their finances. Additionally, one swift payment means that the loan won’t incur any more interest.

Let’s review some of the main elements to consider when taking out a payday loan.

When is taking out a payday loan right for me?

It cannot be stressed enough that taking out a payday loan is not for everybody in need of some last minute funds. Why? Well, in short, a payday loan is a temporary solution to a short-term problem. If you are considering taking out one of these loans, but constantly find yourself unable to make ends meet at the end of the month, then a payday loan is probably not the answer for you.

If you usually have a pretty good grip on your finances and just happened to overspend this month or found yourself in an unexpected emergency with a temporary cash flow problem, then a payday loan could be an excellent tool in easing your financial stresses.

How is the repayment made?

In essence, the pay back process is made as simple and as easy as possible – all thanks to the internet. When an applicant applies for a loan, he (or she) must pass through a series of filters to make sure that they qualify. One of the criteria for a payday loan is that they have a current bank account, which they must provide to their lender. These details are then used by the lender to automatically take the one and only payment on the specified date that was agreed upon by both parties. In doing so, things are made a whole lot more convenient for the borrower especially because the only thing that needs done is to make sure that the amount is in their account on that day.

The amount paid is the loan amount plus the agreed interest.

What happens if the applicant cannot make a single repayment in full?

If you inform the payday loan provider that you cannot meet the agreed payment in full, then the majority of lenders will allow you the option of ‘rolling over’ the payment. Now, this is where things can get sticky because however tempting it may be to have more time to pay back your loan, it is important to note that this will incur larger interest charges. However, you will have had to agree to these costs in the very beginning when you took out your payday loan.

*Ask your payday lender about the costs of rolling over, should you be unable to meet the agreed upon repayment date*

Generally speaking, the interest charges on rolled over loan are split into two categories; additional fees and extra interest. The extra interest will typically be the loan plus the extra month’s interest charges at the specified rate.

The additional fees will typically be that of an application or processing charge. This is usually a small administration fee which is charged out once every time a client ‘rolls over’ a payment.

If you, the borrower, should decide that rolling over the payment will give you more time to get you finances in order, it is imperative that you speak to the lender before your first payment comes out. Failure to notify your lender in advance will most likely result in hefty late payment charges and may hurt your chances of borrowing any future money.

Payday Loans: A Better Solution For The Average American Worker

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.

Instant Payday Loan Lender

All of us have experienced a pile up of bills, a medical emergency, education costs, or home repairs that stretch us financially. We turn to our emergency funds to cover these expenses, but when the emergency cash runs out, we have to resort to our savings or we take on considerable debt. An instant payday loan is a cash advance that can help us out of some of these binds and prevent the accumulation of late fees and overdue accounts that incur interest rapidly. The option of an instant payday loan gives you access to cash within a few short hours when you need it most.

I need cash fast. Just how ‘instant’ is this instant payday loan?

The ‘instant’ label may sound too good to be true. Realistically, there is no lender than can get you cash in a matter of seconds or minutes. However, securing an instant payday loan in roughly an hour is feasible. The online application helps to dramatically shorten the approval process and funds will be released to you much faster than if you were to apply in person and fill paperwork out by hand. Upon submission, you application will be matched and forwarded to the lenders who are best suited to your needs. They will have access to all the contact information and financial history they need to approve your application within minutes and you will see the update in your instant payday loan application immediately.

What is the quickest approach to receiving a cash advance online?

To facilitate your instant payday loan online, it is important to know the requirements ahead of time. Despite the large number of online lenders nationwide, the requirements are fairly standard. You must be a US citizen of legal age, meaning 18 or older. You must be employed in a position that you’ve held for at least two months, and you need to have an active band account for the transfer of funds. Some instant payday loan businesses can only work with individuals who have checking accounts, but other companies have enough flexibility to make a savings account an acceptable alternative. It is critical that you identify lenders who can work within your means to meet the needs of your specific situation.
Another way to ensure the approval of your instant payday loan application is to limit your loan request to $500 or less. Loans are available in the range of $100 to $1500, but the smaller your loan, the more manageable your payments will be. Repaying a small loan will go much faster than a loan exceeding $1000, and it will keep your financial burden light over the few months following your cash advance.

With these tips in mind, the last thing to do is seek out lenders who advertise loans that get you money in an hour or less. You can find this information at the beginning of your application or on the frequently asked questions list on the lender’s website. Wiring money tends to require one hour, so if you choose the right lender, it is possible to get your instant payday loan on this quick timescale.

When should I apply to increase my chances of getting the instant payday loan fast?

Online applications make it possible to submit your loan application anytime throughout the day; however, processing times are fastest during normal business hours. Keep in mind that instant payday loan disbursements are done via cash wiring, so if you apply earlier in the day, you can guarantee that the necessary banking institutions will be open and available to complete the loan process. You are not likely to find an instant payday loan that is available on the weekends or holidays, so try your best to plan ahead.

With all of this information on hand, you have all the tools you need to get a cash advance when you really need one. As with any loan, an instant payday loan is only a short-term financial solution and should not be accepted lightly. When your application is approved, review all the details with a representative from the lender who can help you understand the terms of your financial agreement. Know what your repayment responsibilities are, and have a plan in place to make those payments on time and in full. These online cash advance loans are the fastest way for anyone to get money, and you can expect to see the cash in as little as an hour after submitting your application.