Payday loans are unsecured personal loans targeted at people who need money fast but don’t possess the type of credit or collateral required for a more traditional loan. Payday advance loans are small, short-term cash advances, which are a popular source of credit for Americans. Payday advances help customers, who often are living paycheck to paycheck, bridge the need for small dollar, short-term credit when other options are limited, too expensive or unavailable.
Payday loans can be a better cost alternative versus incurring overdraft fees on your bank account. Industry analysts claim the overdraft plans, which contain fees as high as $35 per overdraft, are high-interest loans targeted at working-class customers. The effective interest rate on these transactions could exceed 2000%. Unlike pay day loans, which charge only a regulated flat fee for providing direct cash, bank overdraft programs work automatically with checks and debit cards. Customers often don’t even realize they have overdrawn their checking and savings accounts until they are notified by from the bank. If you are caught short on cash and are in danger of incurring overdraft fees you may be able to save a lot money by considering a payday loan.
To date, 35 states have enacted laws permitting these loans. Industry analysts estimate that there are more than 22,000 locations nationwide, extending approximately 150 million payday advance loans with a value of $50 billion annually in small dollar, short-term credit to between 15 and 20 million American households. It is obvious there is a need for this credit and there are many reputable lenders like EZCASHUSA.com to provide financial solutions those that need it most.