Law & Justice

Salaried employees and wage earners everywhere often find themselves a bit short to meet their daily needs or some sudden emergency expenses days before their scheduled payday. Not everyone earns more than they spend and they are more of an exception. Without any savings, many Americans have to obtain unsecured short-term loans to tide them over until payday comes.

Advancing Your Paycheck

A Paday loans, also known as a paycheck advance, can be had either from your employer, if such schemes are allowed for their employees, or from 3rd party lenders such as individuals, banks or financing firms that offer them. Not all states allow these types of loans. But those that do regulate them in terms of the maximum amount and interest that can be charged.

Commercial banks that are corporate depositories to fund employee payroll often provide these services at no cost to the borrower. No obligatory paperwork is otherwise needed as it’s easy for them to deduct from your forthcoming payroll the amount loaned, which they do automatically with just your permission on a loan application form.

Commercial Thrift banks generally offer short-term pay advances in states that regulate the practice. Even in states where this is banned, there have been work-arounds that allow you to obtain such loans from bank branches in other states that allow them. So do inquire with your banks should you happen to be in a state that doesn’t allow the practice.

The internet is fast becoming a popular channel for online loan availment. A Google search on the term “fast-payday-loans” returns millions of pages containing individuals and firms offering to provide instant or “next day” paycheck advance services. This seems to be the fastest way as you only need to fill-out their loan application online or have them faxed together with other obligatory documents such as you latest pay stubs or income statement. There are now firms that offer “faxless” processing as well. So a quick browse on the internet may land you to the lender that’s right for your needs.

See That the Loan is Your Last

Having gone through the process of securing a faxless-cash-advance, it’s always a good idea to control your spending habits to make that paycheck advance last. Remember that it needs to be paid off on your next immediate payday. And unless you have managed your expenses to make that loan last until the payday AFTER you’ve paid it, you could end up securing another.

There are always creative ways to trim down on your expenses so that your loan proceeds can sustain you until after you’ve settled the loan. As they say, where there’s a will there’s a way.

If not, see if you can extend the loan to afford you a lighter load on your repayment, say, over a 2-3 month period. Many lenders provide this option for those that cannot meet their 2-week maturity date. But it’s likewise important that you inform your lender beforehand that you will default so that your post-dated check won’t be processed. Otherwise, expect some overcharge or bouncing fee to be levied on your checking account. GP