Finance Roll

When it Rains, It Pours. If you're like me, perhaps you can feel overwhelmed at times by a mounting debt crisis. You're not alone! At times, our monthly cash flow is unexpectedly interrupted by a myriad of offenders. As a result, our financial obligations exceed our income and we begin to panic. Let's look at the good, the bad, and the ugly facts surrounding cash advance payday loans.

What are Payday Loans? The Good. For millions of people, payday loans are a fast and (sometimes to) convenient way to cover unexpected expenses such as unexpected car repairs, mounting utilities bills and medical bills. A payday loan can even save you money by helping you avoid bounced checks and late fees on bills.

If you're running a little behind on your bills, a payday loan may be a better option than paying late fees. Late fees and finance charges on credit cards and other monthly bills can cost $30 or more. And if your utility or phone service is disconnected, there are more fees to reconnect your service. However, you must be honest with yourself and disciplined enough to pay the personal loan and interest charges in full as soon as possible.

Cash advance payday loans are short-term cash loans based on the borrower's personal check held for future

deposit or on electronic access to the borrower's bank account. Borrowers write a personal check for the amount borrowed plus the finance charge and receive cash.

The Bad! In some cases, borrowers sign over (bad decision here, folks) electronic access to their bank accounts to receive and repay payday loans. Lenders hold the checks until the next payday when loans and

the finance charge must be paid in one lump sum. To pay a loan, borrowers can redeem the check by paying the loan with cash, allow the check to be deposited at the bank, or just pay the finance charge to roll the loan over for another pay period.

More Bad! Unfortunately, this is similar to robbing Peter to pay Paul! Often times, desperate and cash-strapped consumers run the risk of becoming trapped in repeat borrowing due to triple-digit interest rates, unavoidable repayment terms, and coercive collection tactics made possible by check-holding.

The Ugly! Payday cash loans are extremely expensive cash advances that must be repaid in full on the borrower's next payday to keep the personal check required to secure the loan from bouncing.

Why Use an Online Payday Loan Service? It is easy to find yourself in a cash dilemma, maybe you made a critical math mistake while balancing your checking account or your big commission check has been unexpectedly delayed a week. There are many ways you can get yourself into a temporarily short-on-funds situation. Luckily, there are ways to make it through until your next payday. Payday loan services offer short and long term loans to get people through to their next paycheck if they have found themselves in a critical predicament.

The Real Solution. Payday loans are not always the best solution for your financial needs. We

recommend that you look at the cost of all of your options before deciding to get an unsecured personal loan or a pay day loan from any institution. We would also recommend that you seriously look into professional credit counseling solutions and find a knowledgeable Debt Consolidation partner that you can trust as soon as possible.