Payday Loans Insurance Against Living Paycheck to Paycheck

It doesn’t take much for someone to get thrown into a scary financial situation…especially with things the way they are in this economy right now. The volatility of the job market, combined with wage freezes for the people that still have jobs, and a cost of living that has skyrocketed recently, creates a situation for many families where living paycheck to paycheck is the only option. Losing control of one’s finances is so easy right now, and a simple auto repair, home repair, or missed utility bill can be devastating.What happens when a person’s fragile personal financial situation finally shatters? If a person is not prepared or his or her savings accounts have been wiped out by a series of unfortunate events, applying for payday loans may be the best option to get through the tough times.What is a payday loan? Simply put, it’s a very short term loan meant to be paid back within one or two pay periods. It can be given in any amount up to around fifteen hundred dollars, it carries a marginally high interest rate and will generally cost up to $30 per $100 borrowed…but when compared to the consequences of being evicted for non-payment of rent, having utilities shut off, a vehicle repossessed, or any other situations such as these, the interest rates and origination fees don’t seem that bad. Often, if a person is a first time buyer, these fees can be cut in half, or even better…so it can be in a person’s interest to try a new payday loan company to see if they have any specials.How does a person get a payday loan? That part is simple…they simply prove that they have a job and a checking account, and they typically get the money within a day. Those are the only two requirements…credit is not important, a person’s history isn’t very important at all, no collateral is required, and payday loan companies are generally pretty generous as to who they’ll loan money to. Even if a person’s credit score has been decimated, they can usually still get a payday loan.Payday loans are great tools to be used in times of financial crisis, and when used strategically, they can be a very wise investment. They can be applied for online or in person (almost every strip mall has a cash advance store) and it doesn’t take very long to get the money. The loans can be used for anything a person finds necessary, and they can be, in some situations, a person’s last lifeline.