Confronting Emergency Financial Crisis
In today's society, there really isn't much a person can do that
does not involve the spending of money. Money is needed for
food, for travel, for communication, for house rents or
mortgages, and even for meeting new friends. Many people live on
tight budgets. This is why in times of an emergency, accident,
or problem, a person is always faced with a financial crisis.
Such financial crisis may lead to more complicated problems such
as depression and rocky relationships with loved ones. This
crisis may also drive anyone to escape to drinking, drugs, and
gambling. But a person need not resort to these self-destructive
means when a viable option is available. This option is called
the payday loan.
Payday loans are cash advances or short-term loans specifically
created to confront such emergency financial crisis. Since the
crisis is often urgent, payday lenders, especially the online
ones, offer speed and convenience.
Most payday lenders grant the loan during the next business day
after the application or loan request has been approved.
Applications are often approved during the same day and the
loaned amount is deposited overnight into the borrower's bank
account. This fast processing is due to the Internet technology
and the fact that lenders demand very little requirements. A
potential borrower or client needs only to have a job which
provides him a minimum monthly wage of about $1000 and to have a
checking account which is at least three months old.
Interests for payday loans vary from one lender to another. Such
interest is usually stated for every $100 loaned. For example, a
$20 interest means that for every $100 borrowed, the client will
need to pay $20. Thus, for a $400 loan, the client needs to pay
$480 on his due date. The due date is usually the date of the
payday. This assures that the client has funds to meet his
financial obligation with the lender. The lender usually debits
the amount loaned plus the service fees from the client's
checking account.
In cases when the full amount cannot be paid, the client has the
option to renew or extend his loan by informing the customer
service representative by phone or email. Or the client may
access his personal online account in the lender's website and
click on the link for a loan extension. Of course, the client
still needs to pay a certain amount on the original due date,
the service fee.
When a person meets his financial obligation and pays the loaned
amount in full, he becomes entitled to borrow a higher amount
from the lender whenever he needs a payday loan again.