We've all been in this kind of situation before – it's two weeks until you will receive your next pay check and your car just broke down. It needs a new starter, which will cost at least $200. However, you only have $250 to last you until your next payday. Not only are you unsure of where to obtain the money, and without a vehicle you can't even get to work!



This is not an uncommon scenario, as many will find themselves short on cash and in need of a quick cash loan at one time or another. If you do not have an emergency fund or a savings account, then an event such as this may cause you extreme stress. This is the time to try a payday loan.

When faced with a need for instant cash, the first thing you might find yourself doing would be searching your home for items to pawn. Basically, a pawnbroker purchases your valuables, such as expensive electronics, jewellery, tools or musical instruments for cash. They usually provide you with the loan amount you request as long as it does not exceed 1/3 of what they could actually recoup on resale of the items if you were to default on the loan. The pawnbroker would hold the item or items for a set period of time to allow you to buy them back. The money required to regain your possessions would be the cash amount loaned to you by the pawnbroker plus the agreed upon fee for the loan.

If you need fast cash or extra spending money, you now have the option to receive a short-term payday loan. Obtaining a payday loan would be an easier alternative to receiving instant cash than it would be to go through the hassle of pawning your valuables. By turning to a pawnbroker, you would also run the risk of losing your prized possessions.

Payday loans are short-term loans for amounts of approximately $100 to $1,000. The life of a payday loan is the time it takes for you to receive your next pay check. This could be a week, two weeks or one month depending on your pay schedule. If you have bad credit, this would not be a problem, as most payday loan establishments do not perform credit checks. Those that do, only do so to make sure that you have not filed for bankruptcy in the past and will not file for bankruptcy in the near future. All lending institutions want to ensure that they will recoup their money plus their fee.

The requirements for payday loans are:

· You must be at least 18 years of age.

· You must have been employed at your present job for at least 3 months.

· Your must have your pay check deposited directly into your bank account.

· You must have verifiable income of at least $400 per week.

Payday loans are usually deposited into your bank account within 24 hours of applying. Some payday lenders, will have payday loans available the very day you apply and often within hours.

If you find that you are in need of a cash advance for a financial emergency or just for extra spending money, obtaining payday loans is a simple alternative to pawning your valuable possessions.