A Few Things You Need to Know About Payday Advances
There are so many in the United States and in the world who are struggling financially, lately. For many in the United States there is the option of receiving an advancement on his or her paycheck. When one receives an advancement on a paycheck it means he or she is taking out a high interest, short term loan. This loan, and the interest is usually paid back with the next paycheck the borrow receives.
But, how do you know if a payday advance is right for you. You should ask yourself a few questions before taking out the loan.
1.) Is this an expense that can wait until payday, or is it something me, or my family cannot live without? Such as diapers, gasoline to get to work or most importantly the electric shutoff notice.
2.) Is this something I can afford to do? A payday advance establishment is like a bank, but the standards for approval are much leaner than that of a bank. The service has excellent intentions, but it is not for everyone.
Most often when it comes time for the loan to be due the interest has been so high and the borrower nearly maxed out his or her paycheck with the principle and the interest. This can cause serious hardship waiting on an additional paycheck to come in. If you have only one source of income then a payday advance might not be the best option for you.
There are some states that have regulated the use of payday advances. Michigan is one of those states. In Michigan, borrowers are only allowed two payday advance loans at any one time. Borrowers are permitted to ask for a payment plan after having re borrowed the same advance eight times. Again, you are only permitted to re borrow the principle of the loan, not the interest. What this means to you is that you will have to live without the twelve dollars to more than two hundred at times. This could again leave you with hardships.