Payday Cash Advance

If you Take a Payday Cash Advance, Make Best Efforts to Pay it Back Quickly

Among the more expensive ways to borrow money is the payday cash advance loan. They're great in a pinch because these loans are for the short term and are usually available with minimal documentation. Unfortunately, the fees that go with them can make them so costly that borrowers can fall behind almost from the beginning.

There are so many of these companies now, both online and on street corners, that there is lots of competition for business. However, anyone contemplating a payday cash advance should read the fine print very carefully. Each one will tell you that their deal is the best, but you can be sure they've still built in a healthy profit margin. By completing the application on this page, we'll refer you to a reputable payday cash advance loan company who will provide reasonable terms.

Typically payday cash advance companies charge a flat rate per each hundred dollars borrowed. They usually avoid the term "interest" because in many cases it's so high that their customers would realize upfront that they're being taken to the cleaners. Instead they pay a "fee" of thirty or more dollars per hundred. To someone in a panic it sounds doable even though costly. Unless people stop and do the math, it always seems that anything they borrow will be easy to pay back.

These loans are designed for the short term; hence the name payday cash advance. They are advertised as a quick cash infusion to hold the consumer until his or her next payday…usually within two weeks. All it takes to qualify is a bank account and a pay stub or something to prove that you do have a paycheck coming. The trouble comes when the loan comes due.

For one thing anyone seeking a payday cash advance most likely has no savings, or they'd use that for their emergency. That means they are living from paycheck to paycheck with no cushion. If they borrow against a paycheck, they won't have enough to pay back the loan and the fees. The lender will gladly roll the loan over because at this point most of them double their rates.

Say for instance a borrower took an advance of $500 plus the $150 fee ($30 X each $100)…they owe $650. The lender will give the borrower another two weeks to pay, but now the charges have doubled ($60 X $500 comes to $300), a total of $800. With most of these companies all payments go toward the fees which keep going up and the original loan…in this case $500 just sits there showing past due.

As you can see, a payday cash advance does not come cheap and should only be done in extreme emergency situations. You'll be better off working with your creditors, borrowing from friends or family, or doing your best to stretch that paycheck even if it means going without something.

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