Unless you earn over $100,000 per year, you’re most likely feeling the effects of a struggling economy. With unemployment just under 10%, real estate prices continuing to drop in most areas of the country, and the majority of lending at a stand still, people are hard-pressed to find solutions to their financial problems.

Problems can include: overdue bills, repossession of a vehicle, eviction, needing to provide long-term care for a family member, a medical emergency, legal issues, home repairs, and so on. When faced with these or related challenges, people are often forced to use a Payday Advance. If used correctly, this can be a great tool. That said, if you’re someone that might want to look into payday loans, then you should know a lot about them. For more information, see below.

There are certain unfortunate situations where you’re not going to care what the penalty for a payday loan is. You’re going to need the money right away. That might tempt you to brush off the following information on fees, but it’s imperative that you comprehend how a Payday Advance works. Once things calm down and cooler heads prevail, you will be happy to have a solid understanding of the type of short term loan you took.

A cash advance payday loan is usually for 14 days. This is because the majority of people who use these loans are part-time workers that get paid every two weeks. This allows them to post-date a check (with the loan fee included) to the lender. A 30-day loan is less common, but also a possibility. Either way, you’re going to need to prove that you’re over 18 years old and that you earn over $1000 per month. There are often a few more requirements, but they will depend on the lender, as well as the state in which you reside.

Fees for a Payday Advance can differ. That said, there are recorded averages for you to base your expectations on. The Consumer Federation of America has found that the average online payday loan is $500. However, these loans can range anywhere from $200 to $2500. The average finance charge is $25 for every $100 borrowed, which comes out to 650% APR (annual percentage rate). These charges can range from $10 to $30 for every $100 borrowed.

While a Payday Advance can be advantageous in certain situations, there is one trap you should watch out for. And it’s not a trap set by the lender. It’s one set by you. Sometimes, a borrower will get a Payday Advance, pay off what they need to pay off, and then realize they need another loan. Instead of going through the entire process all over again, they just rollover the loan. This ends up with the borrower getting to a point where they have to continuously rollover the loan in order to be able to pay the money owed to the lender. This is the reason a payday cash advance loan should be used in emergencies only, not on a regular basis.

Some states, such as New Mexico, will not allow rollovers. For example, in this state, if you get into debt trouble, they will offer a 130-day payment plan. Once you have paid off the loan, you will have to wait 10 days prior to applying for a new one. While this might limit your ability to solve a financial problem quickly, it’s designed for your protection. In New Mexico, the finance charge is also capped at $15.50 for every $100 borrowed.

There are 37 states that will allow a payday loan and 13 that will not. That said, there are always ways around this, but you will have to find out more about these methods based on your own research. The majority of states that allow payday loans have usury laws set in place. These laws protect borrowers from astronomical APR rates. One place where they took this too far – even though it’s not a state – is Washington D.C. After capping the APR at 24%, lenders based in the area began to see that it was too difficult to make a profit. So while payday loans are still legal in this area, no lenders remain.

There is a common misconception by the American public that lenders who offer cash advances are involved in predatory lending. What they don’t realize is that this, in most cases, is a low profit business. This can even be confirmed by the FDIC Center for Financial Research. Did you know that the APR on a payday loan is less than what you would pay on a bounced check, credit card late fee, or late utility bill? A payday loan is meant to help people avoid serious financial issues. It’s not the lender that abuses the system at times, but the borrower. That’s why it’s so important that you consider yourself disciplined prior to taking this type of loan.

If you’re ever in need of a payday loan, you’re going to have two choices. You can get one at a retail location, or you can get one online. While a retail location is a decent option, it’s not the better of the two. Unless you’re aware of a check-cashing establishment that offers cash advances, you’re going to need to search for one. When faced with a financial emergency, this is the last thing you want to be doing with your time. Plus, considering your search will be online, you might as well just take the faster route and use an online payday loan service. In addition to that, in order to get to a retail cash advance lender, you will need transportation, which isn’t always available. And finally, since checks are cashed at these locations, they’re not known as the safest places. It’s better to get a cash advance from home if possible. If you have a computer and can get online, the entire process can be completed in less than 10 minutes.

There is no shame in needing a Payday Advance. Almost everyone faces some form of financial crisis in their lives, even millionaires. If a cash advance can help you get out of a jam, take advantage of it.