How do instant payday loans work?

If you’ve ever taken out a standard loan before, then you may already know that this can be a long and drawn out process. You may have to wait weeks to find out if a lender is willing to let you borrow and it may take years to pay back what you owe. Instant payday loans, however, are designed to be very different.

This isn’t a criticism of regular loans. They are just designed to work differently. Payday loans are based on an alternative cash advance system and may well work on completely opposite principles to other loans. For example, they may:

1) give you a loan for a small amount of money;
2) allow you to get the money you need virtually instantly;
3) not put you through the hoops of a drawn out credit checking and approval process;
4) be paid off in a few weeks (or even days) with a set amount of interest added when you next get paid.

Let’s be honest now. You may have heard that payday loans come with high interest rates. This may not be that surprising given the advantages they may give you. They may sometimes cost more but you generally may not suffer if you manage your loan correctly. Paying back what you borrow when it becomes due just sees you pay a fixed sum on top of your loan amount.

Not paying back as you are meant to, however, may be when this kind of solution costs more. But, if you use high risk loan in the right way this may never be an issue. For many, the benefits of this kind of short-term cash advance far outweigh any disadvantages.

You may not have to go through a long credit approval process for this kind of loan but you may need to tick some boxes before you are able to apply. The criteria set by a payday loans company may vary but, typically, you may need to:

-work full-time;
-earn over a minimum amount every month;
-hold a US based bank account that comes with a debit card.

Instant payday loans may well be a quick and easy lending solution for those that may only need a small loan for a short period. These loans may be an alternative worth considering if you ever find yourself in this situation.

What are the benefits of a payday cash loan?

Payday cash loans are often used to meet specific lending situations. You may yourself find them useful at some point in certain circumstances. The fact is that your borrowing needs aren’t always necessarily the same. Sometimes, for example, you may need to:

– borrow a large sum of money for a number of years to do something specific;
– borrow a smaller sum of money to tide you over for a few weeks until you next get paid.

In the first instance a secured or unsecured loan may be an option. These products are designed to help consumers deal with relatively large borrowing needs. They may, therefore, be set up not to be paid back in full for years at a time.

But, some of us also find that we sometimes have shorter term and smaller borrowing requirements. Sometimes something comes up or we need some cash fast to pay for something that is important to us. But, we may not have a spare couple of hundred pounds to use until we next get paid.

This is where a payday cash loan may be useful. This kind of loan may be typically set up:

– within a few hours;
– to give you access to a small loan (i.e. $100 or $200+);
– to give you a loan until you next get paid at which point you pay back what you borrowed, plus a pre-agreed amount of interest;
– to leave you free from your debt again after your next payday (as long as you pay back what you borrow).

The benefits of this kind of lending may be that they allow you to organise a small cash advance with no fuss for a short time. The other alternatives in the lending sector may make you wait weeks for approval (with no guarantee that you’ll get it) and may expect you to borrow more than you may actually need to.

A payday cash loan may not, however, be designed to last for as long or to involve so much hassle. If you pay it back when your next payday comes along then your only cost is the agreed interest charged. Within a few weeks you may be debt free once again.

What are payday loans?

If you’re looking for a short term loans solution, perhaps even just for a minor amount of money, then you may find it worth your while to look at payday loans. Like any other lending product a payday loan involves borrowing money from a company and paying it back with interest.

But, these loans work a little differently to other lending products. These loans are designed to be:

– arranged and approved at short notice;
– used when you only need to borrow smaller sums;
– used to borrow for shorter periods of time.

These loans are typically used for stop-gap, short-term financing. A standard loan, such as a secured home loan or an unsecured loan, may take weeks to arrange and may come with a higher loan limit than you may need. These types of loans tend to be designed to allow people to borrow more money over years.
Payday loans, however, work more on a cash advance principle. You may, for example, need to borrow a couple of hundred pounds to tide you over until you next get paid. Money may be short, you may have an unexpected bill to pay or you may need fast access to cash immediately.

These loans get their name because they give you a cash advance until you next get paid. Used correctly, they are meant to give you virtually immediate access to a small loan for a few days or weeks. Generally, when you take out a payday loan, your pay-back time is set for your next payday.

So, if you take out this kind of finance you may typically find that:

– you are able to borrow a small amount with just a quick credit check;
– your loan may be processed and paid to you extremely quickly (i.e. often within 2 hours);
– you pay the loan back when you next get paid so you don’t have a long-term debt hanging over your head.

It may be important to think about how these loans are meant to work before you apply for one. This may be a great way of getting a quick and easy cash injection when you need it. But, if you don’t pay it back when you are supposed to, then the interest charges may be an issue.

Because of the way that payday loans work, their charges may be a lot higher than standard lending charges. However, if they are used correctly then this may not be an issue to you. Paying back what you borrow on time and not rolling your debt over or continuing to borrow may make this a viable lending solution for you.

Learn more here – “Payday Loans and Cash Advances”

If you don’t ask then you won’t know

Usually as long as you are paying the current month’s utility plus something toward the past due balance they should be willing to work with you.

If the first person says no, ask to speak to his/her supervisor. Plus ask about financial help meeting your bills. Even if you don’t qualify it will delay them demanding money and give you at least one more payment to send in something toward the past due amount.

financial issue

Well a friend of mine had a temporary financial issue (serious medical problem) and applied to the electric company for emergency aid funding, they paid $100 towards her bill for 6 months. (if she was careful her bill would not be more than that since she was a single person). Maybe you should ask about whether your company offers something like that… that would help. Also the phone can be put on bare bones service for a while as can cable to avoid fees for a while and that way you could also avoid reconnect charges later.
There is actually a way to get the phone “free” if you qualify financially, my friend had that too, it only allowed her to make local calls.

Call them and see if you can work out a payment plan

Say you’re $100 behind on something, and the normal payment is $30. Maybe they’ll accept payment on the overdue amount over 4 months. So for the next 4 months, you send them $55(the normal $30 plus $25 catch-up payment.
Assuming that payment fits in your budget, it does 2 things. One, you’ll be caught up on that one in 4 months. Two, in the fifth month you’ll now have that extra $25 to throw at another bill. Do I hear a rolling snowball…? 🙂

I really don’t have anything to sell…

LOL we don’t keep much extra around here…and what I do have to sell, really wouldn’t bring in enough to do much good….

Not sure where the hours in the day would come. I work probably 9am – 6-7pm now, and have the horses, and a few other things.

I think I’m going to take one bill a month and pay it current, then keep it current, and work my way through it all….not sure any other way….

Ok, I have one more question

I figured up all my recurring bills, electric, cable, etc….I would need to take out $216 per week to pay it all….problem is everything is behind. Would you just start taking out $216 per week, and pay what you can and put the balance in one bill’s envelope until you get enough to pay it on time, and work your way through all the envelopes or would you put the money in each one’s envelope and try to come up with the extra money to pay it on time? I’m not sure where to start there….with being behind.

Hope this helped!

Like someone else said, put aside the mini-EF of $1000 and tackle your cars first. We did and paid off our Van really fast.
If you have the kids college fund in something liquid take the EF out of there. We did this, and we certainly don’t feel bad about since 1. we put it there and 2. if an emergency comes up the money will protect them as much as you two. If it’s not in a liquid account, then stop contributing to the college fund and anything else, including retirement accounts and any other pay-in monthly accounts. Getting your EF put together is more important that any of these.
Another thing we did was change our withholdings at work so are checks would be bigger now and our tax return smaller later. I’d rather have the money now working for me, then give the govt an interest free loan.
Another thing we did was have a rummage sale – made about $300+
I also started selling stuff on Amazon – I make at least $50-100/month doing that, on movies, books, old video games, old textbooks, and anything else I can get rid of online.
Write a budget that tracks your cashflow. We found we were spending so much money on junk and going out to eat and movies, I mean hundreds of dollars a month. Now we cook in and watch cable movies or borrow DVDs from our spendthrift family members.

Now I assume you’re saying you’re entirely debt free except the house. If that’s the case you’ll need 3-6 months of expenses. If you’re not entirely debt free then you would put 1K into the EF and the rest would apply to your smallest debt.

If you can use even one of these suggestions you should be able to make a dent in your efforts.

debt snowball

Follow them in order and all your questions should be answered. He keeps it pretty simple.

1. $1000 baby emergency fund (have that yet?)
2. Debt snowball until all you have left is the mortgage (if you minus out the car payments, are you to this point yet?)
3. Save 3-6 months worth of expenses for a fully funded emergency fund (s/b easy to do once the debt is paid off, including the cars)
4. Save 15% of your income for retirement.
5. Save for kids’ college.
6. Pay off the home mortgage.
7. Build wealth like crazy.

Including the cars in the debt snowball is a huge key to your success. He’s worked these steps with thousands of families and it works! You need to get your husband to a Live Event or let him read the Total Money Makeover. It’ll help inspire him to get rid of the car notes.

Good luck!

In a community property state the debt would be his

Whichever one they can collect from they will go for. Obviously, his ex-wife doesn’t intend to pay. Many soon-to-be-exes have ruined a man by charging up huge credit card and installment payment debts, then leaving them to him. One of my best friends (used to be) did that to her husband. She moved out away from him, and he didn’t cancel the credit cards because she gave them back to him.
But, she had the numbers, and ordered dups and charged somewhere around 175,000, then went and refurnished her new apartment, which she got while away from him, to the max. Don’t remember how much, but more thousands.
They had just bought a car, and he was required to carry the payments but give her use of it because she had their 6 yo son and she didn’t have a job.
He ended up with nothing, as he had to work 2 jobs and sell anything he could to keep up the payments. After a few years, when he had paid almost nothing except interest, and the divorce became final and he had to give her additional money, plus child support, he quit his job and went to another state and became a homeless, shiftless person. It was so sad.

Happy Easter, I have a question

My husband and I don’t have credit card debt but are trying to build our savings account up. We live paycheck to paycheck and have no big savings and only a small college fund for our son (he’s almost 6). My question is do you have any tips for saving without giving up your car payments? I know Dave really stresses to buy something you can pay cash for but my hubby says we are not getting rid of our cars. I have a 3+yo van and he has a 1 yo truck. He’s willing to bend other places but not on our cars. Are there any of you out there that still have car payments and how are you making progress? We’re going to sell our timeshare in Williamsburg, VA too. Thanks for your suggestions!