 Fast Cash Advance Payday Loans
and Check Cashing Loans
Alternatives to Raise Emergency Cash
What Are Fast Cash Advance Payday Loans?
Payday loans seem like a quick, easy way to get a cash advance until your next paycheck. A payday loan is a cash advance secured by a personal check. They are also known cash advance loans, check advance loans, post-dated check loans or deferred deposit loans.
How Do Fast Cash Advance Payday Loans Work?
Here’s how they work. You write a personal check payable to the lender for the amount you want to borrow plus the fee. The lender deposits the check into your account on the next payday. Sometimes the lender gets repaid from your bank account using electronic funds transfer instead of a check.
“I just need enough cash to tide me over until payday,” the borrower says. Cash advance payday loans attract the working poor, someone who faces an unexpected emergency, someone who doesn’t have enough money to get by, or someone who doesn’t have good money skills.
How Much Do Fast Cash Advance Payday Loans Cost?
Unfortunately, cash advance payday loans are expensive. Suppose the lender tells you the fee is $20 to borrow $100 for two weeks If you borrow $300 for two weeks, you will pay a $60.00 finance charge plus you will have to repay the $300 borrowed. The true annual interest rate of this loan is 520%.
If you don’t have enough money in the bank on the next payday to repay the loan in full, your bank will bill you bounced check fees, up to 3 times for the same check. Your cash advance payday lender will also charge you a penalty for each time the check bounces. If you don’t repay the loan, the penalties are high and can include court costs, the lender’s legal fees, and damages. The stress you feel trying to pay your bills is nothing compared to the stress of dealing with a cash advance payday collection agency.
Alternatives to Cash Advance Payday Loans
- Take time to plan your expenses each week. Set money aside to meet regular, predictable bills. Cut back on discretionary spending wherever possible.
- Will you be late with the rent? Speak to your landlord. On a utility or telephone bill, call and ask about making payment arrangements. You can do the same thing with credit card companies. Make sure you ask how much it will cost to postpone or extend your payment date.
- Can you ask your employer for an advance on your next paycheck? This is not a loan, and if your employer agrees, there will be no cost to you.
- The income tax withheld from your weekly paycheck may be more than necessary. Ask your employer to reduce your withholdings. You’ll get more money in your paycheck.
- If you qualify for the Earned Income Tax Credit, ask about getting the credit in your paycheck instead of receiving a lump sum once a year at tax time.
- If your car breaks down, take the bus until you can save enough money for car repairs. You can ask a friend or co-worker for a ride, or arrange a carpool to work.
More Alternatives to Cash Advance Payday Loans
and Check Cashing Loans
- Work overtime or pick up some extra work to meet expenses.
- Apply for assistance programs. There are local charity, religious, or community programs that help families make ends meet in a crisis.
- Consider less expensive sources of small loans, like a credit card cash advance, or a small loan from a federal credit union or bank. The interest rates are much better than a fast cash advance or a payday loan. The interest rate at a credit union will be less than 18%.
- Apply for overdraft protection from your bank. These plans transfer money into your checking account when you overdraw the account. The bank fees for overdraft protection are less than other loans.
- Ask your friends or family to lend you money.
- The best alternative to an expensive cash advance payday loan or a check cashing loan is to plan ahead, to spend less, to set up a savings plan and to live within your means.
I hope life brings you much success. I wish you a very happy day.
----- Surfer Sam
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