Payday Loans for Emergencies

Sooner or later it happens to everyone – an emergency arises that requires money you simply don’t have available. Maybe the washing machine breaks down, or the transmission goes out on the car. Or maybe you have obligated yourself to a payment and the cash you were expecting to have available went to something else, or didn’t come through as expected. In business, these are liquidity issues, or cash flow difficulties.

When these situations arise, you have three options. You can borrow the money from somewhere, you can do without, or (in the case of a bill) you can write a check and hope the bank puts it through. Many banks will do that and charge a very high NSF fee. The bank says they are sure you would rather pay the fee and not bounce the check. They are probably correct, but in some cases the fee is more than the check itself.

It’s much better to borrow the money than to write an NSF check, but that can be problematic also. For the most part, banks are not set up to make “emergency” loans to the average person. Their entire system of operation is based on long term loans that are secured by collateral – usually real estate. They charge low interest rates and so want to make large loans, so that the interest will be substantial over a long period of time. They don’t really want to collect on the collateral, so they scrutinize their applicants carefully and have high credit standards.

None of that fits very well with an emergency scenario in your personal life. A personal emergency results in an immediate need. You can’t wait weeks while the bank considers whether or not to make you a loan. And a personal emergency – the transmission going out in the car, your child breaks his glasses and needs a new pair, your insurance premiums go up unexpectedly – generally costs less than $1,000. Banks aren’t interested in those kinds of loans, because they don’t make any money off them.

These are exactly the kinds of situations where an emergency payday loan is needed. An emergency payday loan can be obtained quickly and with minimal paperwork. In most cases you simply provide positive identification, proof of residency, and write as post-dated check to the lender in return for a fast cash payday loan. When the agreed upon date arrives (usually your payday), the lender cashes the check and your loan is repaid, in full. It’s a very simple operation, and very fast. The payday lender, unlike the bank, doesn’t usually care why you need the loan. They only care that your check is good on the agreed upon date.

Fast cash payday loans should not be used too frequently, because the service charge can be high. However, in some situations they are exactly what is needed. The can be obtained quickly, they are convenient to obtain, there is minimal paperwork and your privacy is maintained. You don’t have to explain to anyone why you need the funds.