There are tons of people who live from pay cheque to pay cheque. After paying mortgage payments, car payments, insurance premiums, and utility bills, some people barely have enough for groceries. People who live on monthly pay cheques, unfortunately, cannot afford to put money back each month in a savings account. It is also common for people who barely make it from one pay cheque to the next to have bad credit history.
What do these people do when unforeseeable tragedy hits and they need money right away? Some of the typical situations where people need money unexpectedly in between pay periods include things like, a car breaking down, unexpected illness and hospital stays, death of a family member that involves funeral costs, home repairs like plumbing or heating problems and so on. They can’t turn to their savings accounts because they usually don’t have one, or they have one that is completely cleaned out.
In cases such as these, they should look into taking out what is known as a payday loan, or a payday advance. These companies do not care about the customers’ credit at all. The loans are simple to get, and all a customer needs to prove, in order to get accepted or loan approval, is the proof that they have steady employment as a means to pay off their loan. Usually a payday loan is no more than the borrower’s financial repayment limit but the amount varies from one lender to another. These are short term loans have different interest rates depending on the lending agencies.
How the process works?
When someone needs a quick loan, they go to a payday loan business and show a proof of income. Then one of two methods come into play, either the borrower writes a post-dated cheque for the amount of money he is borrowing and the company hangs onto it depositing the required amount until the client has been repaid it by the maturity date. The other method is the borrower gives permission to the lender for accessing the borrower’s bank account to take out the amount once the borrower gets their pay cheque deposited.
This is how now these companies operate online. People, who choose to take out a payday loan, need to be aware that while this solves a crisis situation in regards to money, it also requires that it be paid on time. It is important for borrowers to remember to only borrow as much as they need and pay back without getting into financial trouble.