Information about payday loans including what consumers need to know before they apply for one
Online PR News – 10-November-2010 – – Payday lending is a big business and there are a ton of companies ready to make their share of the profits. Good or bad, this business is here to stay and if consumers are in a financial crisis and need cash fast, they need to have all the facts. Prior to applying for a payday loan stop by FastCashApprovals.com in order to gain free advice and information about payday loans. Consumers can also see how they can compare the individual companies using the free affiliate links and advertisments.
What are payday loans?
Payday loans are small, short-term loans of about $500 to $1,500 that have to be paid back in approximately 14 to 21 days, unless the debtor has worked out a special deal with the lending company. Payday loans have many names such as check cashing, payroll advance or deferred deposit. No matter the name, they all work the same. They are HIGH-INTEREST short-term loans.
How do payday loans work?
There are numerous online payday-lending companies but they all work about the same. If the debtor is at least 18 years of age, has a steady source of income and a bank account, then 99% of the applications will be approved within minutes.
Once approved the debtor will give the payday lending company his or her bank account information including account number and routing number, in order to allow for the money transfer to take place. After receiving the money, the debtor can use it for anything such as groceries and car repairs. It's their choice because it's their money.
After the loan term is up, the original loan amount plus the fixed fee will be transferred out of the debtor’s bank account and into the lenders bank account. Upon completion of the transfer, the debt is considered to be "paid in full" and the debtor has not other obligations to the payday lending company.
These loans can be a good way to help overt pending financial disasters however, debtors need to be steadfast because these businesses are known for have revolving doors, which means they may be back there again and again.