Payday Loans: Just In Time For Your Fast Cash Needs

Yara Zakharia, Esq.

Money doesn't grow on trees, and no segment of the population is more cognizant of this reality than cash-strapped Americans struggling to make ends meet. Reconciling the need to put food on the table and the importance of paying off bills that keep piling up can be a stressful juggling act. When a financial emergency strikes, consumers grapple with a new worry, namely, where to obtain the much-needed quick cash. To get them out of a jam, an increasing number of temporary debtors are finding salvation through payday cash loans. These small, unsecured, short-term consumer loans relieve individuals encountering cash flow difficulties by promptly providing them with the funds they need until their next paycheck. Also known as a cash loan, a short-term loan, quick cash, a personal cash loan or a paycheck advance, these loans serve numerous purposes such as 1) avoiding bank overdrafts and bouncing checks, 2) financing vehicle or home repairs, 3) balancing the budget, 4) consolidating bills, 5) covering a late credit card bill, 6) buying airline tickets, 7) paying for emergency healthcare or settling any other unforeseen expenditure.

The expeditious turnaround time and easy qualification terms of the quick loan has contributed to its rising popularity in recent years. Payday cash is typically available in amounts ranging from $100 to $1500. The cost-effectiveness of fast cash is confirmed when one considers the alternatives:

1. The average non-sufficient funds fee charged by merchants and traditional lending institutions is $24 per check and

2. The average late fee charged by credit card companies is $26

By comparison, payday cash loan providers typically charge finance fees ranging from $10 to $23 per $100 borrowed, with low rates offered even to consumers with bad credit.

Cash loans may be obtained either from a brick-and-mortar business or online. There are no long forms to fill out, and prospective borrowers need not wait in line. Paycheck advance lenders typically base loan approval on the following easy-to-satisfy requirements:

· A minimum monthly income of $1,000;

· Steady employment for at least 90 days

· An active savings or checking account that has been open at least 90 days

· Direct deposit

· Minimum 18 years of age

· No outstanding cash loans

In addition, retail quick loan providers will ask customers to fax a copy of their driver's license or another form of identification, a bank statement and a recent pay stub. Online personal cash loan companies, on the other hand, generally do not require the faxing of any documents. The online option offers easy, convenient, and even faster service. The entire process from loan application to payment is completed electronically on the company's website. Numerous online lenders offer cheap payday cash. The online transaction is confidential and secure, and applicants are notified instantly of their approval status.

One of the advantages of cash loans is that bad credit does not pose an obstacle since paycheck advance lenders do not perform a credit check. Within 24 hours of approval, the funds are deposited directly into the customer's checking account. A number of online short term loan businesses make the funds available in as little as one hour. On the loan's due date, the lender debits the amount borrowed plus a service fee out of the borrower's checking account. Cash loans are intended to be paid off in one or two pay periods. In general, consumers have 14 to 30 days to repay their personal cash loan.