Payday Advances - Emergency Cash For Emergency Situations

Payday advances are popular tools for people in short term cash crunches that need money to keep their life moving forward. A payday advance is really a short term loan, where for a small service fee, the payday loan company will deposit money into your account within one or two bank days, and then withdraw the loan on your next payday.

But aren't these loans expensive?

Critics of payday advances demonstrate that the service fees, if treated as an annual loan, are carrying incredibly high interest rates. While this is true, you aren't carrying the loan for a year, you are carrying it for two to four weeks. Sure a $50 fee for a two week $500 loan seems expensive, until you consider the alternative. If your car needs repairs, and you need to get to work, $50 to avoid missing a week of work seems cheap. If your child is sick, and you need to pay for medicine, then the service fee seems reasonable instead of your child getting sicker and being hospitalized. Payday advances are one of the most misunderstood and unfairly maligned financial tools.

But the critics seem smart...

They are smart people, often financial writers. They have expensive educations, good salaries, and access to cheap credit. They may have tens of thousands of credit available on their home equity credit line, multiple platinum cards, and have no idea why people would need payday advances. However, for the rest of the country, payday advances may be the only short term loan solutions available. If you live paycheck to paycheck, and the unexpected arrives, these emergency loans may provide a good alternative to defaulting on payments, getting cars impounded, or having your rent check bounce.

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