If you have immediate bills to pay, such as electric, phone or even groceries, and payday is next week, you are among millions of Americans who are in the same predicament. For some it's even worse, particularly if they have an unexpected emergency. There is immediate help available today, using online cash loans. But the big question is: what will it cost you?
Cash flow is a way of life for most people. They are paid by check or direct deposit either weekly or biweekly. Even sales people who earn a commission have the same difficulty. Commission sales people are often paid minimum wage as a draw against their sales commission, which is paid monthly. No one can live on minimum wage for very long. Paycheck loans provide a cash loan quick that can be paid back on payday. Loan companies make online cash loans simple and easy and the cost is less than you think.
Unlike mortgage companies, most companies that make paycheck loans do not charge an application fee. Since the overnight loan requires the borrower to provide information on their checking account, funds are deposited directly to that account in cash. No faxing of pay stubs, tax returns or other documents are required. This saves money and time, particularly if you need the cash loan quick - like overnight.
The online cash loan companies charge a higher interest for the paycheck loan, but the dollar amounts are small and range anywhere from $15 per $100 borrowed to $25 per $100, if they are a direct lender. The more you borrow and the longer the term, the less it costs for you to get a payday loan.
Now here is something else you should know. Some states that do not allow paycheck loan companies to operate as such do so as CSO's or Credit Service Organizations. These folks have arrangements with local banks in your area that charge 10% to 24% annually, which on a small loan of say $100 is less than $1 for the online cash loan. But the CSO charges a fee to arrange the loan. So for each $100 of a cash advance loan may cost you $20 per $100 borrowed plus the $1 for interest - or more depending on the company.
If the payday loan is not repaid as per the agreement, most companies offer a rollover loan for another length of time. There is a minimum amount that needs to be paid such as the first week's interest only. An additional interest is then charged for the next week. Some states limit the rollovers or consolidations.
The more you know about the costs involved with the companies that provide online cash loans, the easier it will be to reduce the pain of worrying about how to pay your electricity or cable bill.