Helping Make Ends Meet with a Short-term Financial Solution
Today's credit crunch has left millions of consumers without a means to acquire short-term loans to meet their short-term financial needs.
Fortunately, there is a possible solution to help well-meaning consumers who are in need of just a little financial assistance: payday loans.
Understanding This Service
Many people might have heard about short-term financial services in the news recently, but they might not fully understand how these short-term financial solutions actually work.
They are intended to serve as short-term loans that are repaid by the borrower's next payday - generally, within 14 to 31 days.
Typically approved within a matter of minutes and not requiring tons of paperwork, these services offer the benefits of speed and convenience. Additionally, most lenders do not require a credit check prior to approving a request so a consumer who might be shutout from standard loans due to a poor credit score can still acquire the money they need.
Applying for Funds
As noted above, the process of applying for financial relief is very simple.
Consumers can apply for relief at one of the many brick-and-mortar lenders located in their area. To obtain assistance at one of these locations, all the customer needs to do is provide a personal check made out for the borrowed amount plus any finance charges.
Those wanting to obtain funds also are able to apply for financial relief online. In this case, the consumer only needs to provide his or her bank account information and the lender will deposit the loan directly into the borrower's account.
Qualifying also is simple. There are only a few requirements that borrowers need to meet in order to qualify. As a borrower, you must:
- Receive a regular income via employment or a government program, such as social security or welfare.
- Earn at least $1,000 per month if you are employed or receive at least $800 per month if you receive income from a government program.
- Be at least 18 years old.
- Be able to prove American citizenship.
- Have an active savings or checking account with a direct deposit option.
Taking Care of What You Owe
Many types of loans come with an extended repayment period consisting of a series of payments. A cash advance, however, is intended to be paid in full at the end of the repayment period.
The consumer is expected to reimburse the lender in full by the due date. If the individual is unable to take care of the loan, he or she can extend the loan, but at a cost.
Many consumers might have heard about the high interest rates associated with borrowing. These interest rates often start at around 400 percent, but can increase significantly if the installment is extended.
When funds are extended, the lender tacks on a financing fee. This fee is tacked on to the original loan and thereby increases the interest rate of the service even further.
If the borrower is not careful, the financing fees can start to add up quickly, which is why the consumer should do everything possible to ensure that he or she is able to repay the advance by the original due date. Extending balances is what gets individuals into the financial trouble that has been associated with borrowing.