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Today, in a time when unemployment rates have gone up and available jobs have trimmed down, pretty much everyone needs another source of income. This extra money can be used to help afford your lifestyle -- which the monthly pay from your current job cannot cover anymore because prices have been going up -- address some emergency needs and make up your savings.
When you cannot find a sideline job or another regular job that pays much higher than your current employer, sometimes, you are left with no choice but to borrow some money. Cash advance from credit cards is not a very good solution as they charge very high interests rates. Basically, unless you have a rich friend that can lend you money without interest – you are left with no choice but to avail of a payday advance.
Definition
Payday advance, often used interchangeably with the terms paycheck advance and payday loan, is the borrowing of money on a short-term basis. This type of loan capitalizes on the fact that the borrower promises to repay the money on his or her next payday.
Advantages
A payday advance is preferred over other types of loans because of the following:
1. It accrues smaller interest because you are required to pay back the amount of money you've borrowed in a matter of one or two months. Thus, the finance charges imposed on you only takes effect on a short period of time.
2. The stress associated with the thought of having a payday advance is short-lived. Whether you acknowledge it or not, you get stressed knowing that you have monthly payables on loans. Imagine having to pay off a loan for 30 years, how worrisome could that thought be for the borrower!
Since a payday advance must be paid on your next payday, then the stress goes at the same time that the debt is cleared. You may barely have enough money to live comfortably till the next time you receive your paycheck, but at least you don't have to think about paying off something. You are not living in debt anymore.
3. It promotes discipline. Knowing that you have a debt to pay on your next payday gives you the sense of discipline and control to spend only on your basic and most immediate needs – at least for the time being. Since your take home pay would be just enough to get you through the next payroll cycle, you are, in a way, teaching yourself to turn away from those lovely shoes and gorgeous gadgets in the mall. Who knows, because you are paying off a payday advance, you can lower the level of your lifestyle and eventually make that “reduced lifestyle” as your current way of living?
4. In relation to advantage number 3, because you have already developed a sense of discipline, you can then transform this into a “savings habit.” Since you have already gotten used to cutting down on your luxuries, you are then left with a more substantial amount to save.
Yes, a payday advance is still a debt. But this is one type of loan that cuts down a lot of things: interest rates, time of repaying the loan, and the stress associated with borrowing money. In a way, this is still a form of “temptation,” but what do you choose if you're torn between the devil and the deep blue sea?
Money Loans Company - Payday Loans and Cash Advance
20 Eglinton Ave. East
Toronto, Ontario, Canada
M4P 1A9
A payday loan put in simple terms is a small, unsecured, short-term cash advance that can help consumers to meet their instant cash needs until the next payday. A payday advance is commonly used to meet unexpected expenses that could arise from any situation. A lot of times, these pay day advances are also used to finance a holiday, purchase a gift or have a little extra cash to spend while on a holiday. The biggest advantage of these loans is that these are paid back on the next payday and as a result you do not need to pay interest for a long duration.
The evolution of pay day advances
The concept of payday loans was introduced in the early 1990's. The main reason why these loans were introduced is the fact that the penalties on late payment of bills and the cost of bounced checks was steadily increasing. This fueled the need for a solution that could help consumers to meet these expenses even if they were running short of cash. Also, the options for short term credit that were available at that time had extremely high costs that were not affordable by most customers.
With the acceptance of the advantages that these offered and the resultant increase in consumer demand, these loans became popular and are now easily available. In fact, now these loans are recognized by law and there are regulations that the industry has to adhere to. Availability of consumer protection have made these loans even more popular.
How to get a payday loan
So, how can you get a payday loan? Well, the process is extremely simple and at the same time very quick. All that you, as a customer, need to do is, to find the payday advance that suits you the best. As long as you have a regular job with a regular income, getting an approval for these loans is not a problem. The next prerequisite is that you should have a checking account and should be over 18 years of age. If you fit these criteria then all that you need to do is fill in the application form that is usually available online. Next, go through the terms and conditions and would have to agree to comply with these. After that you would need to write a personal check for the amount of the emergency payday advance you are applying for and the agreed fee. This check would bear the date of your next payday. Once these formalities are taken care of, the payday advance company would process your request and the pay day advance would be deposited directly into your account, usually within 24 hours.