payday advances - The Pros and the Cons It seems like a simple premise - consumer needs money before payday. They can visit their local payday advance provider and get instant cash. On their next payday, the money owned back is to be reimbursed by the consumer. Of course it sounds simple - but here comes the catch. payday advances charge such exorbitant interest rates that a consumer that borrows once or twice may never be able to recover from it financially. Since payday advances are relatively easy to apply for and receive, many consumers find the process simple enough that they begin to rely on the instant cash without much thought to the financial consequences. Let's discuss the disadvantages and the advantages of your friendly neighborhood payday advance: The Bad • Consumers in need of a lot of cash at any one time will not be able to have access to such cash. Typically the limit in most places is $1000. • Consumers who borrow are required to pay back the amount borrowed plus interest at one time or face consequences to your credit. Typically, 14 days is the allotted time period you have to pay back the full amount. If you borrowed as much as you make in your pay, including interest, you will not have a pay check to fall back on that week. • Many people do not understand clearly the amount of interest charged for a convenient payday advance. Some payday advance companies charge up to three times from what you borrowed. Many times people can not truly afford the interest charges on the amount they borrowed. The Good • Consumers are able to access up to $700 to $1000 in cash usually on the same day or at least within one day's notice. • Application process involves having a steady, paying job and that your regular pay will cover the amount you borrowed plus interest. You only need to provide basic vital statistics on yourself and have an active bank account. • Bad credit histories do not hinder getting cash from a payday advance. The application is not extensive and can be completed in as little as 30 minutes. • The consumer can use the cash for anything they need, whether it be for an emergency or a getaway trip. The general consensus about payday advances is that while the convenience of the "instant" cash when you need it can be a plus, the consequences for having to pay back a loan you likely can not even afford can be severe and lead to even more financial problems for the consumer. If you are in a real bind, have no other resource for cash and are considering a payday advance, the most important thing you can do is contact the payday advance company and ask questions. Make sure you understand exactly how much you will be responsible for paying back in two weeks time. If you have financially swing the payment with interest, a payday advance may be of assistance to you in an emergency. But if you have the chose, avoid payday advances and the financial problems they can cause the uninformed consumer. payday advance  |  cash advance  |   no fax payday loans  |   payday loans  |   cash advance  |   cash advance  |   payday advance  |   |