Getting a Fast Pay Day Loan

Everyone likes to have firm control of their finances because it proves to themselves and others that they have a good grip on their life in general. Unfortunately, times can get tight for anyone and sometimes emergencies arrive that require individuals to have cash on hand that they may not have. There are a number of ways for individuals to cover these financial shortfalls, but the most popular method these days for covering those shortfalls is a fast pay day loan.

Payday loans are a fast way to get cash to cover financial shortfalls when an emergency occurs. A payday loan is a short-term loan that usually has a maturity date no less than two weeks and no more than one month from the date of the loan’s origination. Payday loans are usually small with most being under $1,000. There are a number of different kinds of fast payday loans an individual can apply for, including but not limited to the following:

• Title loans
• Cash Advances
• Credit Card Cash Advances

The typical payday loan process begins with an individual seeking out a lender. The individual and lender come to an agreement on the loan period and amount, and the borrower writes a post-dated check to the lender for the amount of the loan plus fees and other charges. The borrower is then given the money on the spot or an electronic fund transfer is setup to place the money directly in their checking account. On the maturity date the individual can either show up to repay the loan in person or allow the lender to cash the check left with them. Other forms of payday loans and cash advances include title loans, which provide individuals a loan by taking out a loan against the value of their vehicle. Credit Card cash advances are cash advances taken out against the credit limit of a credit card.

If individuals take out a payday loan based upon a check written from their bank account and don’t have the funds to repay it when the maturity date arrives; the consequences could be difficult to handle. When this event occurs individuals have the option in some areas to rollover or extend their loan period, but this often results in much higher interest rates. This usually leads to an individual paying back much more than the original loan was worth and further damaging their financial standing.

In the United States the federal government does not regulate payday loans and cash advances. Each state is left to regulate the industry themselves, resulting in a variety of different laws across the different states. Currently there are 13 states in which payday loans are either illegal or not feasible thanks to state laws. In the following states individuals cannot take out payday loans:

• Arkansas
• Connecticut
• Georgia
• Maine
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Pennsylvania
• Vermont
• West Virginia

Individuals considering a fast payday loan should consider the following advice before taking out a loan. Ensure that your reason for seeking a payday loan or other cash advance is for a real emergency. Situations such as emergency medical bills, car repairs, or unexpected bills are good reasons for seeking a payday loan. Other situations such as major retail purchases or home improvements are not suitable reasons for a payday loan given the high interest rates attached to these loans.

Lastly, before seeking a fast payday loan think about alternatives that may exist. Although embarrassing it may be easier to ask for money from a friend or family member because they don’t come with extremely high interest rates. Consider seeking a small loan from a bank as they often have lower interest rates than cash advances.