We’ve all been there before; a bill payment is due, and you just don’t have the cash to make it. Maybe the payment is for something extremely important, compounding the pressure you face. It could be for your car payment, or your school tuition, or even the mortgage on your home. Rather than making the payment late and being hit with penalties, fees, or repossession attempts, you could turn to US Payday Loans and see if they make a good fit for your situation.
First, let’s take a good look at the process itself, and what is entailed. Another term for these payday loans is cash advances, since they are based upon your earning potential instead of balanced against assets like a normal long term bank loan does. Typically, you are going to have to present a lot of identification to the lender, including things like proof of employment and proof of earnings.
Make sure to pay close attention to the fees and rates you are paying to engage these services. Sometimes the rates can approach usury, since the laws governing the practice of these forms of loans differs drastically from country to country, and even from state or province to state within those same countries. Compare the APR and EAR and make sure that you aren’t being charged an arm and a leg for some small amount of capital.
The US Payday Loans industry often receives a lot of criticism for things like this. It is often claimed that the practices of these agencies are exploitative, and that they use aggressive and misleading advertising and marketing campaigns to conceal the extremely high cost of their services. As there tends to not be any overarching regulatory agency with the power to make laws for these services, there is also a lot of misunderstanding in the law itself, which can differ widely from place to place.
The industry responds by saying that their fees are reasonable, and very much in-line with the costs they bear. They are quick to point out that up to 20% of these payday loans are defaulted upon, leaving them holding the balance. They are also often the only people willing to extend any sort of credit to those without a lot of assets in the bank to serve as collateral.
All in all, there is a time and place for payday loan services. Just make sure you don’t get in too far over your head, and read all the fine print!