Destroy The Odds

It is the end of the month, and you just realized you don’t have enough money to pay all your bills. Somehow, your budget just didn’t go as intended. Maybe you are an hourly employee and your employer cut your hours again. Maybe you had unexpected bills pop up, or a special occasion that cost extra. So what do you do?

Payday loans are an option open to most everyone. A payday loan (also referred to as a payday advance, cash advance, or paycheck advance) is a short-term loan, generally a small amount, that is meant to cover the borrower’s expense until he or she gets paid again. You can borrow as little as a couple hundred up to a couple thousand. To get the loan, you can go in person to a retail payday lending location or complete the process online. The payment is generally due in full at the borrower’s next payday, which is generally a two week term. The borrower writes a postdated check to the lender for the entire loan amount including the loan fees. The lender will process the check on the date the loan is complete (the due date).

In some states, extended payment plans are available at no additional costs (terms vary from state to state). Finance charges vary, and they range from 15–30 percent. For example, a borrower who wants a payday loan of $400 may write a personal post-dated check for $460 for up to fourteen days. The lender holds the check until the borrower gets paid again. When that date occurs, the borrower has the option to redeem the check or renew and extend the loan. The cost of this particular loan is $60, which is 15 percent. If the loan is not extended, then the check is cashed and the loan is paid off. Payday loans are a great option when you need short-term cash.