How To Use Pay Day Loans To Your Advantage.

By Alan Jason Smith

Payday loans are everywhere and easy to get. With so many people living paycheck to paycheck these loans are becoming a popular way to handle unexpected expenses. There are some good points and bad points to pay day loans. You should always be well informed before borrowing money and the following will explain what payday loans are and some things to watch out for so you do not end up with financial troubles.

Payday loans are where you write a personal check to a payday lender. The lender holds this check for a set period of time and loans you the amount of the check minus fees. The lender then cashes the check on the agreed upon date. You can also pay the amount to the lender and get your check back or pay additional fees to lengthen the time of the loan. Most fees charged are based upon the amount they are lending you.

The Truth in Lending Act makes it mandatory that the lender lets you know about any fees associated with a pay day loan. To receive a pay day loan you will need a checking account and a form of identification. Pay day loans are quite easy and fast to get.


Pay day loans can help you solve a money crunch. If you use them responsibly you can benefit from them when you have an emergency. You shouldn’t rely on them as a means of getting by all the time. They can help you avoid borrowing from friends or family, having to get a loan, bouncing checks or having to pay late fees. They are here to help if you have no other credit option, but need money now. There is no inquiry into your credit report and it is easy and fast to get one. A pay day loan is a good option for someone who needs emergency cash before pay day.

Pay day loans have been looked down upon because some people rely on them to get by month to month. Some people fall way behind and have to get an extension on their loan. This racks up fees and causes more financial problems. The mandatory arbitration clauses included in the contracts make it impossible for people to seek legal means against the loaners in court. You can get extensions on your pay day loan if you can not afford to pay the check back, but this will cost you more fees. If you use these pay day loans every pay period you might find yourself wrapped up in debt.

Alternative options to pay day loans may be better for someone who has financial problems. You may be able to call your creditors and get extensions or waive late fees. You may find a small loan will help you pay off some debt and relieve the need for pay day loans. A cash advance on a credit card may have smaller fees than a pay day loan. Some local community programs provide emergency assistance for those having cash problems. Seeking alternative options may help you avoid getting in a financial crunch.

Pay day loans can help, but they can also cause problems. The bottom line is if you use pay day loans in emergency situations and you know you will have the money to cover it without falling into debt then a payday loan is for you. If you are relying on pay day loans to get by check to check and having problems paying back the loans then you should seek an alternative method. Pay day loans are intended for occasional needs not as a means of getting by.

About the Author: Alan Jason Smith is the owner of which is a great place to find lending links, resources and articles. For more information go to:


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