Using Payday Loans During Difficult Times
We all know that we’re going through some difficult financial times. A temporary solution, until the economy rights itself, and for those who have been most affected by this turndown gets back on their feet, could be online cash advances.
Please remember, though, that online cash advances should only be a temporary solution. Many people find themselves, as the old saying goes, with more month than money, and cash advances may be the way to get to the end of what might be a tough month.
Just make sure that you have enough cash at your next payday to cover this loan. Payday loans can be expensive. The reason for this has to do with the difference between the APR, or the annual percentage rate, and the effective annual rate (EAR). This difference can be substantial because the EAR takes compounding into account.
Excuse the math, but here’s why the APR and EAR can be so different. For a $15 charge on a $100 two-week (the average length of a cash advance, online or not) cash advance, the APR is 26 x 15%, or 390%. The EAR for a $15 charge on a $100 loan is (1.1526 – 1) x 100%, or 3,685%. In the U.S., finance loans usually range from 15-to-30% of the amount for the two week period, which translates to rates ranging from 390% to 780% when expressed as an APR. I’m sure you can by this why cash advances should be temporary.
The good news is that at least in the U.S., it’s really difficult to “flip over” a cash advance. Most states require that payday loan companies offer their customers an extended plan or even a payment plan to pay off their cash advances. This is true whether the cash advance is done online or in a payday loan office.
It’s also true that it’s much easier to get a cash advance online. Many companies that offer payday loans online require that a potential customer fax them an application, along with his or her Social Security number, personal information, bank account information, and proof of stable employment. Many companies will give a customer a cash advance online without a fax, though. All he or she has to do is fill out an online form, which includes disclosure about the above information. If that’s the case, the customer should make sure that the online payday lender is safe and secure.
We at PostingPayday.com want to help you make sure the online payday loan company providing you with an online cash advance is trustworthy, secure, and safe. We have a list of reliable, local companies that won’t get you into a “debt trap.” You’re under no obligation to us; our goal is to connect you with the best company, one that’ll temporarily help you get out of the hole you may find yourself in.
We understand that your current financial troubles are probably not your fault. Unfortunately, there have been financial forces at work, forces the average worker has very little control over. That’s why online cash advances are so important in this day and age. In some ways, they’re a necessary evil, and we at PostingPayday.com want to help you. Hopefully, there’ll come a time when you won’t have to have an online cash advance, but until that time, we’re here for you.