Feeling the Squeeze at the End of the Month?

Almost everyone has had the harrowing experience of being in a very tight financial spot. There are few things more frustrating than the uncertainty that comes with being strapped for cash when the end of the month comes, and try as you might, you can’t always plan ahead. Accidents happen; cars break down, people get hurt, and appliances break, all of which can leave you unsure of where the next rent check is going to come from.

Payday loans can be the perfect solution. Available from a number of lenders, these short term cash loans are granted with one or two week terms and can cover a few hundred dollars. Borrowers simply visit the storefront, present verification of income, and fill out applications for these short term loans. If granted, the loan is given in cash on the spot. The lender asks the borrower to write a check, postdated to the date of loan repayment, for the full amount of the loan, plus fees. If the borrower fails to pay off the loan on the agreed upon date, the lender can cash the check. If the borrower does repay the loan, the lender sometimes increases the borrower’s future limit, never exceeding the limitations set by the state.

To keep up with the times, many lenders are now offering payday loans online. In these cases, the process is similar, except that the amount is directly deposited into the borrower’s bank account and repayment is automatically extracted from the account. Online payday loans sometimes require the borrowers to fax proof of employment.

Lenders providing payday loans online and in person are subject to strict laws in states where they are allowed. Most jurisdictions limit the annual APR rate that any lender can charge. According to U.S. law, payday lenders can only use the same collection practices that the standard loan industry can use. They cannot, as some lenders have tried, threaten delinquent borrowers with criminal prosecution for check fraud.

The availability of payday loans online and in person is not a service to be taken advantage of, but it can provide help for borrowers who are in a tight spot. Next time you’re worried about where your next payment is going to come from, remember that payday loans can help.