08:33:00
It's estimated that upwards of 12 million Americans use payday loans to cover emergency cash needs, but several states don't permit local payday lending, leaving residents living paycheck to paycheck with no available local cash relief to fill the gap.
Residents in states such as New York, Arizona, Montana and Ohio among others cannot simply visit a nearby cash advance lending store and receive a payday loan - and may not even know that such short term loans exist. Previously, they would have to travel to a neighboring state to get a quick payday cash advance to cover their expenses between paychecks, but with the onset of online payday lending, many may now quickly get the cash they need to meet ends meet without traveling out of state.
Through online payday loan sites such as USA payday, residents of states previously 'dark' can now apply for fast cash advances. Various states stipulate loan terminology and terms, location and registration of the lending company, and interest rates, but the new online portals allow residents of states such as New York, previously unfamiliar with payday loans or those in which these loans have been recently outlawed, online payday loans can help them meet emergency cash needs.
Payday loans are meant to be used to cover unexpected or emergency expenses, and are not really long-term solutions for chronic debt problems. They are short term, small dollar loans ranging from $100 to $1000. These cash advances are smaller loans than a bank would generally make and are approved in a shorter period of time since re-payment is secured against a paycheck. The money advances carry higher fees than traditional loans, and are to be repaid on the borrower's next paycheck - ideally in two weeks.
Applying online is private and confidential as opposed to walking into a payday loan store. Once approved, the loan proceeds are deposited directly into the borrower's bank account. A bank account and steady source of income are required.
While ideally everyone should have some sort of emergency cash fund, for many Americans that live paycheck to paycheck, that will never be a reality. Faced with unexpected expenses such as leaking roof, car repairs or a pet emergency, finding a cash advance may be the more palatable solution to the alternative - of not meeting monthly recurring expenses such as rent, child care or utilities. Now, even residents of states in which payday loans are not permitted, may use online money advances to get the quick emergency cash they need, when and where they need it.
Residents in states such as New York, Arizona, Montana and Ohio among others cannot simply visit a nearby cash advance lending store and receive a payday loan - and may not even know that such short term loans exist. Previously, they would have to travel to a neighboring state to get a quick payday cash advance to cover their expenses between paychecks, but with the onset of online payday lending, many may now quickly get the cash they need to meet ends meet without traveling out of state.
Through online payday loan sites such as USA payday, residents of states previously 'dark' can now apply for fast cash advances. Various states stipulate loan terminology and terms, location and registration of the lending company, and interest rates, but the new online portals allow residents of states such as New York, previously unfamiliar with payday loans or those in which these loans have been recently outlawed, online payday loans can help them meet emergency cash needs.
Payday loans are meant to be used to cover unexpected or emergency expenses, and are not really long-term solutions for chronic debt problems. They are short term, small dollar loans ranging from $100 to $1000. These cash advances are smaller loans than a bank would generally make and are approved in a shorter period of time since re-payment is secured against a paycheck. The money advances carry higher fees than traditional loans, and are to be repaid on the borrower's next paycheck - ideally in two weeks.
Applying online is private and confidential as opposed to walking into a payday loan store. Once approved, the loan proceeds are deposited directly into the borrower's bank account. A bank account and steady source of income are required.
While ideally everyone should have some sort of emergency cash fund, for many Americans that live paycheck to paycheck, that will never be a reality. Faced with unexpected expenses such as leaking roof, car repairs or a pet emergency, finding a cash advance may be the more palatable solution to the alternative - of not meeting monthly recurring expenses such as rent, child care or utilities. Now, even residents of states in which payday loans are not permitted, may use online money advances to get the quick emergency cash they need, when and where they need it.
About the Author:
Bradley Hart is a communications manager for USA Payday, an online resource for consumers needing payday loans orpayday loans to carry them over between paychecks. Bradley is a frequent contributor to magazines and blogs in the area of financial services, consumer credit, and payday lending. You can comment on this article on Bradley's blog at USA Payday.
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