Many of us have been there; desperate for cash due to unexpected expenses or simply low on cash. Your next paycheck is two weeks away, but your Electric Bill is due now.

Sounds familiar? It may be easier than you think to get the money you need, when you need it. Payday Loans are a form of small short-term personal loans available through financial institutions, usually check cashing franchises, until your next payday. Some lenders may lend out to a month.

There are several advantages. Such as:

* Convenience
* Online Payday Loans
* No Credit Checks
* Speedy Turn Around- in most cases, you walk in, fill out an application, the representative verifies your information and you walk out with cash.
* No long term commitments
* No long time consuming lending application and forms
* Funds available immediately
* Easy qualification requirements

However, as well as the advantages, there are disadvantages to Payday Loans. It is a fact that Payday Loans are quick and convenient, but what about the down falls? Many people become addicted to Payday Loans convenience and soon become caught up in the system.

It starts with the need for money immediately, and then soon you find yourself getting Payday Loans from other lenders to pay off previous lenders. The common reason this happens is because individuals will borrow more than they can pay back.

Payday Loans comes with extremely high fees. Usually, to borrow $50.00, you will need to pay back $58.50 and to borrow $100.00 you will need to pay back $115.00. The average fee is $15.00 per every $100.00. If you default on your payment, the lender will cash the check you provided to get the loan.

If the check does not clear, you will be charged a bad check fee, typically $50.00 and a late penalty fee, which varies. Not to mention, the fees your bank will charge you.

The truth of the matter is that a Payday Loan can devastate your financial status.

If it is necessary to obtain a Payday Loan, never borrow more than you need. Make sure you have a strict plan on paying the money back.

If you are unable to pay the money back, speak with your lender and discuss a payment plan option. In most cases, the lender will work out a payment plan with you, in order to receive their money back.

This solution will be easier and more stable versus the hassles of collections attempts and paperwork.

Copyright © 2005 Paul Johnson

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