| It is becoming more and more difficult to get fast | | | | consumer is not ale to cover the check in a timely |
| financial help due to the current economic downslide. | | | | manner they can actually be arrested and jailed for |
| Many people are finding themselves having to write | | | | fraud! |
| checks that they know they cannot cover just to get | | | | On the opposite end of the scale are people who will |
| by. Perhaps even worse, some people are doing | | | | do without some basic necessities for a while until they |
| without some of life's basic necessities because their | | | | get their regular paycheck. These people resort to |
| pay date is still a week or two away. There is an | | | | cutting back on the number of meals they may eat in |
| alternative to all these situations and while fairly | | | | a day or just don't eat at all. Many times these people |
| expensive, payday loans are usually a better | | | | will have their utilities disconnected because they are |
| alternative. | | | | unable to pay them on a specific date which is quite |
| With the economy in turmoil the banks have tightened | | | | often just a few days before their payday but they do |
| up on their lending practices. Some people that were | | | | not know of any alternative but to let the services be |
| able at one time to walk in a bank and get a quick | | | | interrupted. Once they finally get paid, they end up |
| signature loan are no longer able to do so. It isn't | | | | paying staggering reconnect fees and late fees just to |
| because they have bad credit, it is because the banks | | | | get the basic utilities restored. |
| simply don't have the money to lend. Aside from being | | | | It is these situations that payday loans are quite literally |
| rejected by the bank, another downside to bank loans | | | | the best option. While this type of loan may seem |
| is the fact that every time you apply and are | | | | expensive at the outset, compared to the fees and |
| approved or declined, you will have a negative mark | | | | penalties for writing bad checks or having to pay |
| on your credit report just for applying. It is just the way | | | | reconnect fees for utilities, payday loans are very |
| the system works these days. | | | | competitive. Some people will point out that these |
| Many consumers have even taken it upon themselves | | | | loans have an unusually high APR, which is true. But |
| to be their own credit grantor by writing checks that | | | | these are short term loans and can not honestly be |
| they do not have the funds to cover. This is not a new | | | | based on APR. An average payday loan will cost the |
| practice by any means but it is becoming more | | | | consumer approximately a total of 25%. Compare this |
| common place as banks tighten up their purse strings. | | | | rate with the cost of the options mentioned above and |
| One might think that the banks would frown upon this | | | | payday loans are clearly the best choice during these |
| activity, but in reality the banks make huge sums of | | | | trying times. If you were to annualize the bounce |
| money from these people who will end up paying large | | | | check fees or reconnect fees toy would see an APR |
| fees to the bank for the hot check. Even worse, if the | | | | much higher than what you will pay for a payday loan. |