Are you one of the thousands of consumers that find yourself living from paycheck to paycheck, without a budget to adhere to? For those consumers that have not established an emergency fund, tapped out all of their credit resources and are simply broke, payday loans may seem like the only solution when it comes to facing emergency or unexpected expenses.
There are many names for payday loans, cash advance loans and check advance loans. Regardless of the name these are some of the most expensive financial services that are available to consumers. When you are apply for a payday loan you are required to sign a post dated check to the institution that is lending the funds. At this time, the check is held in safekeeping in case the debtor defaults on the payment. If the payment is not made on time there can be daily interest charges of up to forty percent.
Many experts have theorized about the use of the post dated check as in most cases there are no funds within the account to cover the amount that has been borrowed. After all, the client is obtaining a payday loan as they are out of options until they receive their next pay check.