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Short-term debt, such as a payday loan is better in many ways. What is a payday or a cash advance loan? If you are a little short of cash or in an emergency and need funds to see you till the month end, you can approach a payday lender for this money. The money is directly credited to your bank account, usually within 24-48 hours.

You have to repay once you receive your next pay check. It’s a great help when you need to make urgent car repairs, pay utilities, or make some other urgent payments. These cash advances are typically for short terms, for 2 to 3 weeks, and the amount is usually between $300 and $1500. The payday lender won’t ask you why you need the money.

The Future Is Uncertain

Most of us can do with some extra money. That is why so many people take loans for a variety of reasons. Taking a loan is always a big decision because when you do, you are making a commitment of paying off the debt, plus the fee and interest, within time. The term of the loan is as important as how much money you have taken as the loan. read more


A payday loan gives you money quickly. It’s a great help in an emergency, when you are short of cash but have to cover for an unexpected situation. The cash advance is usually for a small amount (between $300 and $2000) and it’s for a maximum of a few weeks (till your next payday). However, in spite of this, some people have problems in repaying their payday loan, just as is the case with any other type of loan.

There can be additional fees when you default and legal consequences as well. Knowing how best to pay off the payday loan is thus going to help you immensely.

Understanding the Payday Loan

  • What you can expect – Payday loans are among the most convenient ways of borrowing money. Yes, there is a charge, but it is less than what you have to pay as the overdraft fee to the bank for overdrawing money from your checking account. But, a late fee will be applied if you cannot repay on time, and there will also be rollover rates if the loan term has to be extended. The total amount due as interest can shoot up if you keep the loan repaid for a long time, making it even more difficult for you to pay back.
  • Read the fine print – There are some lenders who renew or extend the unpaid loan with a borrower’s consent. It is included in the terms when you take the loan. So read the terms and conditions carefully before you sign any document.

Paying Back the Loan

Do not hesitate to ask the lender if you have any question about the policy. Get all the clarifications you need right at the start so that there is no confusion about when and how to pay back the loan.

  • You need to know whether the loan will renew automatically. There are loans that renew automatically and set a new payment date, unless you tell the lender specifically to end your loan.
  • Understand the privacy policies of your lender. Ensure that your personal information is always protected.
  • Learn about the additional fees before taking the loan. There are lenders who will charge fees for depositing the amount to your bank electronically.
  • Find out how best to contact the lender. There are payday lenders who are entirely online. Also, ask about the response time.
  • If you authorized the lender to deduct the amount due directly from your bank account, you should know the precise amount that will be withdrawn, and the date when this withdrawal will happen.

Create a Budget

Create a responsible budget within your income. This will give you more fiscal control and help you pay back the loan on time. You can avoid the late fees and interest rates. read more


Payday loans are small-dollar loans, usually between a few hundred dollars and $1000. The cash advance is made for a couple of weeks till the next payday. Since the amount and the term is less, a high majority of people have no problems in repaying the loan amount and also the fees involved and interest. But there will always be a few people who face problems in their repayments, just like any other type of loan.

There will obviously be consequences of not paying back any loan, not just a payday loan. After all, when you are taking credit, you are making a commitment of paying it back. It is important for the lender’s business that you pay it back. It is also important for the other debtors because if the lending business doesn’t have the funds, how will it offer cash to people who need a loan?

But what can be the consequences of not paying back a payday loan? Let us investigate.

1. First, admit the credit consequences:

Your credit score is likely to take a hit when you default on the loan, and don’t work out an alternative payment plan with your lender. If you default, the lending agency may sell this debt to a collection agency legally, though this may not happen always. The default may also be reported to the three most important credit bureaus. read more


An emergency doesn’t come with a warning. It can happen anytime, and in fact, often tend to happen when you least expect them. Take for instance the weekend!

Almost everything is closed during the weekend – the banks, all conventional lending institutions. So what do you do if you suddenly need some money, and cannot afford to wait till Monday to apply? Even then, it is likely to take a few days before you will actually get that cash. If you are lucky, you will get it by the end of the next week. So do you approach your friends, family, or worse, your colleagues? This is surely embarrassing. Is there a way to avoid this?

A payday loan can be the right solution. There are many payday lending agencies across the United States that will offer you a quick-cash loan even during the weekend. The application and approval process is very easy and quick. You can apply online from the privacy of your home. No one has to know that you are a little short of cash. All you have to do is just submit some basic information. The processing and approval can happen within just a day. So you will have the money within just 24 hours. That is the fastest way you can get credit in the United States. read more


Many people are self-employed now, and the number is increasing every day. A lot of them are in traditional work, such as doctors, and lawyers. But there is also a new generation of self-employed people like accountants, software professionals and writers, for instance. So what happens to a self-employed person if he needs a loan, particularly if the person has poor credit?

Traditionally, payday loans have been denied to such people because they do not have a stable source of income. The up and down cash flow was deemed as too uncertain. But that is changing. Many lenders are realizing that, just like others, self-employed people too need a cash advance, and they too cannot afford the time traditional lenders will take to process and approve the loan. In an emergency, a payday loan remains the only practical option for the self-employed people.

Plus, banks have been traditionally unwilling to offer a loan to self-employed people, particularly if the person is in the first year of going independent. Many banks may regard working for yourself as a risk, even if you are making decent money, and are thus unwilling to offer a loan to self-employed people. To them, being self-employed is like being just a step away from becoming unemployed. read more


Like it or not, our world runs on credit. We need a loan to buy a home, credit cards so that we can stretch our spending power, and also personal loans for a variety of requirements. But these traditional loans or credits are not always available. There are people who are simply not eligible. They may not be the practical option too when you need the money quickly, because traditional loans take time. A payday loan is an alternative, and is in fact, the most viable alternative, in many situations.

Who are the people who need a payday loan? What are the situations when a payday loan is the right option for you? Let us find out.

1. When The Current Credit Is Maxed Out

Let us assume you have credit cards and have taken loans before. However, there can be credit card debt, which you are presently paying off, but because of circumstances, you have to max out your card. In such a situation, you won’t be eligible for more credit because off too much credit, income not being regular or sufficient, or poor credit history. You can consider taking a payday loan. read more


The payday loan industry has only been around for the last couple of decades, but its impact on the economy has been tremendous. In the US now, there are more payday lending businesses than McDonald’s restaurants. Millions across the country are taking these small-dollar loans.

But it’s not just the United States where the payday loan industry is booming. It is booming in the United Kingdom, Canada, Australia, and in many other countries. In fact, in the UK, according to estimates, there is one payday lending shop for every seven banks. In Australia, more than a million people take these loans to fund their short-term cash shortfalls. While the statistics clearly prove how popular they are, there is a popular misconception that only the poor and the marginalized take these loans.

Nothing could be further from the truth. The truth is that, many take these loans to improve their credit.

Payday Loans for Improving Bad Credit

Many payday lenders claim they often provide “bad credit solutions” to people who need money quickly. A sizeable chunk of the applicants are actually individuals with negative marks on their credit file. Even those who high-income people may have a poor credit rating and so, high-income earners might also find payday lending most useful. read more


CNN came out with a report last year, which mentions the steep rise in the costs of raising a child. According to this report, the estimated expense on each child between birth and 18 years of age now stands at $227,000. This is 40 percent more than what it was a decade back. Of course, not just the cost of raising a child, the costs of almost everything has gone up steeply in the last few years. You are in trouble if your salary of earning hasn’t increased by this much at least.

Unfortunately, that has not happened with a lot of Americans. They are thus very close to the poverty line, trying desperately to make the ends meet. They desperately look for money at the end of the month to pay off the bills and meet other commitments. Many don’t have a credit card, or even a bank account. Rarely will they get a loan, except for a payday cash advance. Payday loans are small-dollar loans, which they can repay next month, so it’s not a problem. They would be in real trouble without this help. read more


Many of us have to take a loan from time to time when there is a need for some extra cash. It could be a big amount for a new home or car, or just a little to pay off the utility bills, make urgent car repairs, or something like this. For big sums, the best places to approach are the banks. For small dollar loans, millions across the United States, approach payday loan companies.

Unfortunately, however, sometimes we are unable to pay back the loan on time. This happens to the most honest individuals as well, people with the best intentions. There can be unforeseen circumstances, sudden developments that necessitate a delay.

If you miss a payment for whatever reason, debt collectors will probably come knocking. Many creditors or debt collection agencies will first give you a call, and then begin to repeatedly come knocking till the time you settle the debt. That is a huge hassle and an embarrassment. It is thus good to know your rights and obligations before you deal with these debt collectors. It will be wise to know the federal laws and your state rights about collections. This will surely prepare you better. read more


The memoir of J.D. Vance “Hillbilly Elegy” was a huge success last year. It was one of the most acclaimed and talked-about of the summer. The story of Vance, his troubled childhood, days spent in abject poverty, and how he fought out of it, is very inspiring. All readers and even the critics praised how Vance was able to portray the hardships he faced so frankly. But his story is not the only one. Millions of Americans are fighting the odds to stay afloat and make their lives a little better.

Hillbilly Elegy has been recommended because it helps us understand the many facets of American culture and society. Robert Pondiscio from the U.S. News, Helen Andrews from National Review, Clarence Page from the Chicago Tribune and many others have said it is a must read. Clarence says, “Vance helps us to understand how shrinking opportunities for low-income whites helped to fuel the rise of Trump”.

There are other reasons as well why you must read this book, if you haven’t done so already. The book shows that too often, lawmakers and government officials come up with regulations and restrictions that are not in the best interest of the very people they are expected to help and support. There is a huge disconnect between what they perceive to be good, and the actual realities. read more