We live in the world of economic crisis, and from time to time everybody of us can get into the situation when we can hardly make both ends meet and start looking for alternative sources of getting the money. You can borrow the money from your friends or relatives as an alternative or get a cash advance from your employer; a payday loan is one of the alternatives to obtain the money, moreover it’s one of the most popular. As a payday loan is becoming more and more popular more and more people want to know what it is and whether this alternative is the best solution for their situation.
What is a payday loan?
A payday loan is a short-term loan which usually ranges from a few hundred dollars to no more than fifteen hundred dollars. A customer normally secures the loan by giving a post-dated check for a certain sum of money to the lender. Payday loans can help you in the emergency situations when you need same day cash to meet some unexpected bills till your next paycheck comes.
A payday loan is not a revolving line of credit. It is provided for a short period of time and that is a key factor in this type of loan. The concept is to get a payday loan to cover a small bump in the road or to smooth any rough financial edges till your next payday. If you think it can solve your bigger financial problems you are making a huge mistake. A payday loan can only worsen your situation if you have permanent financial problems.