When The Recession Blues Hit, Payday Loans to the Rescue

Why would I ever need a payday loan?

Payday loans also known as a payday advance has traditionally existed mainly to provide you and your family with a cushion against any unforeseen or urgent expenditure(s) that you might find tough to cover with your current monthly paycheck. In the current recessionary scenario when job cuts and pay cuts are the norm of the day, payday loans fill in the gaps to let you concentrate on more pressing issues at hand.

Yeah alright, but I don't have the time to go through the hassles of the loan process…..

Payday loans can be completely hassle-free, easy to secure (you can apply for one online generally, with no need to fax anything), safe and….hold your breath…really fast. So much so that the money could be in your account in under 2 hours! That's the best part of it, especially in the current circumstances. You never know when you might need a bit of extra cash.

So far so good, but there must be some alternatives…

Of course there are alternatives to payday loans. Do they present a better option? Let's find out.

Payday loans v Overdraft

• If you do not have any overdraft protection, the bank will charge you a 'non sufficient funds' fee which is very high. Not just that, the business for which the payment was meant will also charge you a returned check fee. If all this is not enough, frequent overdrafts will damage your credit rating.
• If you do have overdraft protection, then the bank charges you a flat overdraft fee. But the massive disadvantage here is that even if you overdraw by a few cents, you end up paying this fee in full.
• In comparison, a payday loan is interest free; instead a small fee is charged which is much cheaper when compared to the overdraft fee.
• There is no credit check required so your credit ratings are immaterial if you want a payday loan.

Payday loans v Late Fee

• The late fee charged by credit card companies is quite steep. It can be slapped for a missed due date or even for a postmark date.
• In addition, even if you pay the late fee promptly, you might end up with accrued additional charges on your bills for months to come, thus completely messing up your budget.
• Payday loans, on the other hand have no such additional costs. There's only a small fee which is lesser than the late fee and you are absolutely clear about the date of loan repayment, i.e. when you get your next paycheck.

How can I get a payday loan for myself?

It's as simple as it gets. All that you need is an active checking account, and some regular income. Just apply online and fill in your details (this data is encrypted so it's totally safe) and your application will typically be processed in 15-20 minutes or less. Money could be in your account in less than 2 hours using the direct deposit instant cash. ... click here to read the rest of the article titled "When The Recession Blues Hit, Payday Loans to the Rescue"